NAO (Britain) Annual Report with cash basis accounts (last year)

7/29/2019 NAO (Britain) Annual Report with cash basis accounts (last year)

1/36

A N N U A L R E P O R T 2 0 0 1

sp en d w isely

h elp in g th e n ati o n


2/36


3/36

key successe1.4 b illion saved by ouover the past three year

Exceed ed our target of 8 for every 1 sp ent o

53 major reports to Parltopics from the Millennitackling the problem of

650 b illion of g overnm

revenue audited in 2000

An NAO manager - Kare- wo n Central GovernmPublic Servants of the Y

Com ptroller and Auditoras aud itor of the Learninand the Pos tal Services


4/36

Akey f ac to r i n

m oney i n t helearn f rom s

a re we l l p l aced t o

T he wea l t h o f i n f o

cou rse o f ou r wo

hal lmarks o f succe

p r a c t i c e a n d p r o m

serv ices . Th is app

f rom ou r co re audassess whether pu

w i se l y and p ro pe r l y

Em ula t in g succ ess i

w o rk . I n p ro fessi o

leaders o f the Prem

at t hose s t rugg l i n

b u s i n e s s , w e l e

com pan i es no t t hos

the pub l i c sec to r h

fa i l u re. In t he N a t i o

put t ing a greater f

p rog rammes and e

fac tors that have m a

It is encouraging th

s tor ies in the pub l

learn. Tw o exam ples

po i n t . I n ou r s tudy o

h igh l igh ted an imag

pro jec t where thro


5/36

Repor t fo r Par l iam ent pu b l i shed last year, w e ident i f i ed

the key requ i remen ts o f ri sk m anagem en t , each o f w h i chwe i l l us t ra ted w i t h examp l es o f whe re t h i s had been

done we l l . I n do i ng t h i s we d rew ou t success f ac to rs

f rom spec i f i c cases i n t he H om e O f fi ce , H i ghw ays

A gency and P ub l i c Reco rd O f fi ce . W e fo l l ow ed t h i s up

by organ is ing a conference on the sub jec t ear l ie r th is

year , wh ich was a t tended by top o f f i c ia ls f rom across

gove rnmen t .

Th ink ing about success in a s l igh t l y d i f fe rent contex t , i t

has cer ta in ly been an exce l len t year fo r the Nat iona l

A ud i t O f fi ce . W e have aud i t ed accoun ts cove r i ng 650

b i l l i o n o f i n c o m e a n d e x p e n d i t u r e , a n d p r o d u c e d 5 3

va lue for m on ey repor ts . The f inanc ia l sav ings that w e

have ach ieved over the pas t th ree years have r i sen to

1 .4 b i l l i on w h i ch m eans t ha t w e have, aga i n , mo re than

met our ta rget o f sav ing 8 for every 1 that the o f f i cecos ts to run .

The sec t ions in th is repor t i l l us t ra te the breadth o f our

w ork and t he i m pac t w e ach i eve. Fo r examp l e , we have

p roduced two ma j o r repo r t s on t he UK response t o t he

con f l i c t i n Kosovo : one on t he f i nanc i a l managem en t o f

t he m i l i t a r y ope ra ti on and t he o the r on t he hum an i t a ri an

assi stance p rov i ded by t he U n i t ed K i ngdom . I n ca r r y i ngou t t h i s wo rk we saw a t f i r s t hand t he magn i f i cen t

con t r i bu t i on t ha t ou r m i l i t a r y and a i d pe rsonne l had

been ab l e to mak e in Kosovo. In a d i f fe rent sph ere o f our

w o r k w e p r o d u c e d , i n q u i c k t i m e a n d u n d e r a n i n t en se

media g lare , the f i rs t comprehens ive ana lys is o f the

W e ca r ry ou t ou r w o rk a t

change in the way pub l i c syear w e have seen the su

se i sm i c change i n t he f i na

o f c e n t r a l g o v e r n m e n t

commerc i a l - s t y l e , resou r

p rog ress and t he comp l e

change shou l d n o t un de re

team of over 400 pro fess i

wo rk i ng on f i nanc i a l audpos i t i ve par t in br ing ing

major cha l lenge i s to co

accoun t fo r t he who l e o f g

w i t h p repa ra t i ons f o r t h

gove rnmen t accoun t .

O ur ow n ro l e came un de r

the Gove rnmen t commi sso u t a r e v i e w o f c e n t

accou ntab i l i t y. The repo r t

i t makes i mpo r tan t recom

w i l l d o a l l t h at w e c a n to

and w e l ook f o rw ard t o th

i n du e cou rse.

O ne o f Lo rd Sha rm an ' s rNa t i ona l A ud i t O f f i ce t o b

t h e a u d i t o r o f a l l n e w

depar tm enta l pub l i c bo d ie

been happen i ng i n p rac

recent l y appo in ted as the

focusing on succesThe Comptroller and Auditor Gen


6/36

The accountabilityprocess

O ur repo r ts are presented

to Par l iam ent and

pub l i shed

The Comm i t tee o f Pub l i c

Accounts (PAC) holds

eviden ce session s on m ost

o f ou r r epor t s a t wh i ch

they quest ion the senior

of f i c ia ls respo nsib le

The Com m it tee publ ishes i ts

detai led recommendat ions

w hich are aimed at ensur ing

lesson s are learned an d

m istakes not repeated

The Gover nment pub l i shes

i ts response to each

o f t he Co m mi t t ee s

r e c o m m e n d a t i o n s

Our in

T he C&

o f C o m m

on an a

M i n i s te r

C h a i r m a

mi t t ee aC o m m o

professi

winning

par t o f t

s e t b y

A ccoun t

aud i t o rs

fo rmanc

the N A O

rehensiv

the bod

Our ro

W e au

governmdeta i led

pub l i c s

assuran

savin gs f

and pe

PAC hearing

PACreport

Gover nm entResponse

N AOreport

o


7/36

Financ ial aud it

T he C& A G , w i t h t he NA O 's supp o r t , i s respon si b l e f o r

aud i t i ng t he f i nanc i a l s t a temen ts o f a l l Gove rnmen t

depar tments and agenc ies and repor t ing the resu l ts to

Par l i amen t . W e a l so aud i t a range o f i n t e rna t i ona l

agenc ies (A presence on the w orld stage, page 18 ). Each

yea r w e aud i t som e 550 accou n ts. In 200 0 -200 1 w e al soa u d i t ed 9 0 D e p a rt m e n t al A p p r o p r i at i o n A c c o u n t s w h i c h

are be ing p hased o ut as a con sequen ce o f the t ransfer o f

cen t ra l gove rnmen t accoun ts t o more commerc i a l - s t y l e

resource accounts .

A t t h e e n d o f e a c h a u d i t w e f o r m a n o p i n i o n a b o u t

whether the f inanc ia l s ta tements are f ree f rom mater ia l

mis -s ta tements and whether the t ransac t ions in themhave appro pr ia te Par l iam entary author i ty. I f w e ident i fy

m ater ia l m is -sta tem ents, the C& AG w i l l i ssue a qua l i f i ed

o p i n i o n . I n 2 0 0 0 - 2 0 0 1 w e q u a li f i ed o u r o p i n i o n o n 2 0 o f

t he accoun ts w e aud i t ed .

W h e n t h e C & A G ' s o p i n i o n o n a n a c c o u n t i s q u a l i fi e d , o r

w hen th ere are o ther s ign i f i cant m at ters ar i sing, w e

prepare a repor t fo r Par l iam ent . An d in a l l c ases w e w r i teto t he aud i t ed body a t t he end o f t he aud i t to ou t l i ne ou r

f i nd i ngs and w here i m provem en ts i n t he i r systems cou l d

be made . (W orking to provide the b est audit service,

page 10 ) . Such 'management le t te rs ' o f ten lead to

sign i f i can t chan ges (Securing change, page 14 ).

Value for money w

V a l ue f o r mo ney exam i na

cen t ra l gove rnmen t p rog r

to assess pe r fo rmance ,

suggest w ays i n w h i ch p ub

(A real concern for the c

cons i de rat i on o f econ om y( m a x i m i s i n g t h e r a t i o

e f fec t i veness (ac tua l outc

i n tended ) . Ou r w o rk as

p o l i c i e s a r e i m p l e m e n t e

po l i c ies them selves.

W e i d e n t i f y t o p i c s f o r

mon i t o r i ng and ana l ys i ngacross the whole range o f

A key f ac to r i s whe re mo

scrut iny . The C&AG dec i

ahead and , i n do i ng so , h

o f t he PA C. O ur study p rog

and f lex ib le - sub jec ts ca

there i s thought to be a g

events unfold, page 8 ).

W e seek to ensure that ou

W e there fore d iscuss ou r

r e p o r t s w i t h t h e b o d i e

accu racy and co m p l e tenes

b l i d

as Parliam ents watc


8/36

In essence our ro le i s twofo ld: repor

spend i ng and r evenue co l l ec t i on

chan ge in pub l ic serv ices. W hi le a

t hese a r e en ti r e l y d i s ti nc t , i n f ac t w e

l l

account

im p rov

Tackling Obesity in Eng land

As par t o f th is majo r inves tigat ion w e:

b r o u g h t t o g e t h e r a p a n e l o f e m i n e n t

exper ts to adv ise us; con su l ted a w iderange o f vo luntary bod ies ; used lead ing

academ ics to pro v id e the fi rst autho r i ta t i ve

est im ates o f the hum an and f in anc ia l co sts

of obes i ty ; surveyed a l l hea l th author i t ies ,

1 ,200 GPs and 1 ,200 prac t i ce nurses ; and

took a c ross-governm ent loo k a t the i ssues

i nvo l v i n g a l l t he depa r tm en ts conc e rned .

T h i s gave us a comprehens i ve unde r -

stand in g o f the i ssues enab l in g us to repo r t

a s t rong, c lear and author i ta t i ve set o f

f i n d i n g s P a r l i a m e n t . T h i s i n c l u d e d

assessm ent o f ho w w el l , and co ns istent l y,

the prob lem is tack led across the N H S,

a n d h o w w e l l G o v e r n m e n t d e p a rt m e n t s -

i nc l ud i ng t hose dea l i ng w i t h educa t i on ,spor t , t ranspor t and food s tandards - are

work ing together on the i ssue.

This know ledge w as the basis for a series of

recommenda t i ons . F o r examp l e we re -


9/36

Financ ia

A s a resu l t

r ange o f

cont rac ts an

the V a l ue f o

Pr ivate Fina

agreed that

improved ap

dea l s a r i si ng 1 7 3 m i l l i o

i n 2000 . T h

w h i c h w e d

i n 1999 . O

read by the

in tak ing for

A n examp l ere f inanc ing

which has r

pub l i c sec to

re fi nanc i ng

t o d raw on

n e w g u i d a n

f inanc ing, c

m a t te rs. W eseminars fo

der ive b ene

A f u r the r case i n p o i n t i s ou r r epor t on t he Rad i ocom mu n i ca t i ons

Agency 's jo in t v enture w i th the pr ivate sector to establ i sh a radio

spect rum con sul tancy. This innovat ive ar rangement w as the f i r s t

of i t s k ind and therefore in making judgements about i t we took

t f t h b f t h i h i h t h A

W e t ake opp or t un i t i es t o ma

r u n n i n g o f g o v e r n m e n t w h

com pr om i si ng ou r i ndepend en

t o pu t ou r n ame, a l ong w i t h t

C i i d O f f i f

performance

complementary


10/36


11/36

We ta i lor the scop e of each repor t to ensure that w e

add valu e at the r ight tim e. Genera l l y , our va lue for

m o n e y s t u d i e s a r e c o m p l e x , r e q u i r i n g t h e

under t ak i ng o f ex t ens i ve r esear ch , ca r e f u l eva l ua t i on o f

e v i d e n c e a n d a n a l y s i s , a n d w i d e c o n s u l t a t i o n w i t h

depar t men t a l o f f i c i a l s and o t he r agenc i es. M any o f ou r r epor tstherefore take up to a year to com plete. But w e are a lso a ler t to

deve l opm ent s i n t he bod i es w i t h i n ou r r em i t . On o ccasi on an

opp or t un i t y can a r i se fo r us t o exam i n e and r epor t on an i ssue

ver y qu i ck l y so t ha t w e can m ake an i mpo r tan t con t r i bu t i on t o

par l i ament a r y accou n t ab i l i t y and per f o r mance i m pr ovement .

Fast t rack studies tend to be very prec ise in scope, a good

examp l e be i ng ou r r epor t on The f inanc ia l ana lys is fo r the Lond on U nd e rg round Pub l i c P r i vate P ar tne rsh i ps . W e h a d

al ready s ignal led our in tent ion to examine these Publ ic Pr ivate

Par tnership s (PPP) after con t racts had been signed. Fol lo w ing a

se l ec t commi t t ee r ecommenda t i on and gener a l pub l i c and

par l i ament a r y i n t e r es t , we dec i ded t o b r i ng f o r war d one

componen t o f t h i s wor k : an exam i na t i on o f t he pub l i c sec t o r

compar a t o r exe r c i se ca r r i ed ou t by London Under g r ound t o

he l p i t dec i de on t he va l ue f o r money o f the op t i ons f o r fund i ngthe Tube in f rast ructure.

Th i s t i me l y exer c i se , comp

analys is and comment to Pa

proposed PPP. Ahead of f ina

any deal , i t c lar i f ied the u

London Under g r ound ' s ana l

w ou l d n eed t o be taken i n t o athe deal . The repo r t a lso d re

future PPP deals.

W e a r e al so somet i m es ab l e

pub l i sh a r epor t . The NHS

consu l t a ti on paper du r i ng t he

Educ a t i ng and t ra i n i ng the fu

for Eng land, pub l i shed i n M aon ou r emer g i ng f i nd i ngs t o p

a com prehen sive respo nse o

fast trac k work as event


12/36

W

e recognise the pressures fac ing the publ ic bodies

we aud i t and make ever y e f f o r t t o s t r eam l i ne ou r

w o r k . W e a i m t o m i n i m i se a n y d e m a n d s o n b o d i e s

by m ak i ng ou r aud i t mo r e ef fi c i en t and co - oper a ti ng w i t h o t he r

audi tors and inspectors whenever possib le. This focus on

e f f i c i ency and co - oper a t i on ensur es t ha t we p r ov i de an aud i t

serv ice that adds real op eration al va lue to those w e audi t .

W e r ev i ew r egu l a r l y our appr oach t o f i nanc i a l aud i t t o ensur e

audi ted bo dies and the scop e

controls increases as their sys

W e co - o r d i na t e ou r w or k w

bo dies wh ere possib le in the

o f ou r w or k and m i n i m i si ng

t h i s by cond uc t i ng j o i n t st ud i

I n M ar ch 2001 , t oget her w

working to

the best audit


13/36

And t o p r oduce our r epor t on t he I m p l e m e n t a t i o n o f t h e

N at iona l Probat ion Serv ice In form at ion System s Stra tegy w e

l i a i sed c l o se l y w i t h o t he r aud i t o r s and i nspec to r s. W e w or ked

c l ose l y w i t h H M I nspec t o r a te o f P roba t i on , und er tak i ng j o i n t

v i s i t s t o p r oba t i on se r v i ces and j o i n t l y i n t e r v i ew i ng key

per sonne l and s t akeho l de r s and we a l so l i a i sed w i t h D i s t r i c t

Aud i t and w i t h t he Home Of f i ce ' s Aud i t and Assur ance Un i t .

Th r ough our comb i ned e f f o r t s , we wer e ab l e t o o f f e r t he

Probat ion Serv ice a more comprehensive assessment of the

pro ject and prov ide a bet ter understanding of the fu ture

informat ion needs of the serv ice.

W e seek t o m ax i m i se , bo t h i n o u r aud i t o f f i nanc i a l s t at ement s

and i n ou r va l ue f o r money wor k , t he wor k o f o t he r s such as

internal audi tors, regulators and external audi tors of re la ted

bodies. For example, when we need to invest igate the use of

p u b l i c m o n e y w i t h i n a h i g h er e d u c a ti o n i n s ti t u ti o n w e w o r k

c l ose l y w i t h t he H i gher Educa t i on Fund i n g Counc i l t o d r aw on

i ts knowledge and ensure that concerns ra ised wi th us are not

a l r eady be i ng i n vest i gat ed . In t u r n t he Fund i n g Coun c i l m i gh t

consu l t w i t h i n t e r na l aud i t o r s w i t h i n un i ve r s i t i es who may

agree to in vestigate par t i cu lar i ssues on beh al f o f the N AO as

par t o f t he i r p r og r amme o f wor k . I n t h i s way we ensur e t ha tt he r e i s no dup l i ca t i on o f e f f o r t as w e co l l ec t t he ev i dence w e

need t o com p l e t e ou r wo r k . W e a re a l so ac t i ve m emb er s o f t he

For um, se t up by t he Fund i ng Counc i l w i t h un i ve r s i t i es and

other s takeholders to reduce the burden on the sector whi ls t

ensur i ng pu b l i c accoun t ab i l i ty .

W e p l ay a l ead i ng r o l e i n t he Pub l i c Au d i t Fo r um , wh i ch

compr i ses a l l Un i t ed K i ngdom na t i ona l aud i t agenc i es . TheFor um has a spec i f i c r em i t t o bu i l d on t he ex i st i ng co - oper a t i on

be t w een t he na t i ona l aud i t agenc i es t o enhance t he e f f i c i ency

and ef fect i veness of publ i c audi t .

Co- oper a t ion w i t h o t he r aud i t o r s can a l so t r anscend na t i ona l

Financial Audit

Meteorolog ical

O ur f i nanc i a l aud i t

l ead i ng edge. W e hav

deve l op ou r app roac

the f i rs t pub l i c bod ie

In terna l Con t ro l i n l i

w e l l as aud i t ing th is

p r o v i d e t h e m w i t h a

the i r per form ance ag

fai r ly stated.

O ur r i sk -based aud

com p l e te ou r aud i t o

six w eeks o f the en

de l i vered a qua l i t y

t imescale and i n p ar ti c

us a c lear understand

and key areas o f r i sk w

more c losely on those

O ur aud i t app roach

B oard ' s des i re t o i

management cu l ture

and serv ices to meet t

i n c l u d i n g t h e g e n e

schoo ls, broadcasters

av ia tion ind us try.

Working with th

Under the Soc ia l Sec

State Earn in gs Rela t

w idowers were due to

spou se w as due to h a l

the Depar tment o f So

th h d t l


14/36

An im por tant par t o f the wo rk of the NA O is to assess the

qual i t y of publ i c serv ices. As par t o f th is we a im to

prod uce severa l repor ts each year that loo k at f ront l ine

d e l i v e r y o f s e r v i c e s t o t h e c i t i z e n a n d t o m a k e

r ecommenda t i ons f o r i mpr ovement .

A w ho le range of our w ork fa l l s in th is category. Severa l o f our

repor ts th is year have been concerned to improve the serv ice

pr ov i ded t o app l i can t s f o r compensa t i on and bene f i t s . Fo r

examp l e , ou r r epor t i n t o C om pensa ti ng v i c t i ms o f v i o len t c r i me

i nc l uded 23 r ecommenda t i ons d i r ec t ed t owar ds p r ov i d i ng

v i c t i ms w i t h a be t te r se r v i ce and dea l i ng w i t h app l i ca t i ons i n a

m or e t i me l y and p er sona l f ash i on . W e suggest ed i n pa r t i cu l a r

t ha t a t e l ephone ca l l cen t r e cou l d i mpr ove t he se r v i ce t o

c u s t o m e r s a n d h e l p t o s c r e e n o u t c l e a r l y i n e l i g i b l eapp l i ca t i ons .

O ur st udy The medica l assessment o f i ncapac i ty and d isab i l i ty

benef i ts l ed t o r ecommenda t i ons a i med a t speed i ng up t he

payment of d isabi l i t y benef i t s to those ent i t led to them and to

H i gh l i gh t i ng t he gover nm ent

m i l l i on hom es i n Eng l and a r

r e p o r t I n l an d Fl o o d D e f en

impor tance of people in thos

and know i ng w ha t to do i n a

co ndi t ion surveys are com ple

not be re l ied on to prov idebel ieved there to be.

The enor mou s human and f i n

by t he NH S w er e und er l i ned

neg l i gence c l a i ms i n E ng

r e c o m m e n d a t i o n s s h o u l d p

access to rem edies, speed up

W e a i m t o ensur e tha t t he pu

and have f ound new ways

d i r ec t l y , f o r examp l e by ex

repor t and issuin g a separate

most recent ly as par t o f ou

a real conc ern for the c it


15/36


16/36

Our w ork leads d i rect ly to substant ia l f inanci a l sav ings

and improvements to systems. But at the same t ime

our i mpac t goes much w i de r . Bod i es awar e o f ou r

in terest in a subject might in i t ia te improvement regard less of

whe t her we l aunch an i nves t i ga t i on . And somet i mes t hey

m i gh t f o l l ow good p r ac t i ce r ecommenda t i ons t ha t we have

m ade in a repor t on another area. Ind eed aw areness of the very

exis tence o f the ef fect i ve U K pub l ic aud i t process can of ten

st imulate benef ic ia l change.

W h i l s t ou r t eams pu t much e f fo r t i n t o t he p r oduc t i on o f r epor t s

w i t h w e l l - c o n s i d e r e d r e c o m m e n d a t i o n s o n h o w c e n t r a l

government could improve i t s de l i very of serv ices, that i s

cer ta in ly n ot the end o f the story. W e und erstand the need

f o l l ow i ng pub l i ca t i on t o t ake s t eps t o max i m i se t he ex t en t t o

w h i ch t hose r ecomm enda t i ons a re ac t ed o n . I t i s one t h i ng t o

suggest benef ic ia l c hanges, another to seek to secure them .

O ver the last three years our w ork h as generated f inan cia l

sav i ngs o f 1 . 4 b i l l i on mean i ng we have met ou r t a r ge t o f

achiev i ng 8 of savin gs for the taxpayer for every 1 in n et cost

o f r unn i n g t he N a t i ona l Aud i t O f fi ce . Spec i f i c examp l es a r ehighl ighted wi th in other sect ions of th is repor t where re levant

and m or e a re i nc l ud ed over l eaf .

securing change


17/36

M emb ers of the

Cos M anf red i , c

Sandeep Shanb

Cat heri ne M cD

An dr ew Ba i gen

Jane M organ ch


18/36

Cr uc i a l t o secur i ng change i s ou r f o r ma l r e l a t i onsh i p w i t h t he

Com mi t t ee o f Pub l i c A ccou n t s wh i ch bases i t s enqu i r i es on ou r

repor ts . At i t s hear ings, which are at tended by the C&AG, the

Commi t t ee t akes ev i dence f r om sen i o r gover nment o f f i c i a l s

and i n t u r n i ssues i ts ow n r epor t w i t h r ecom m enda t i ons. The

Gover nment i ssues a po i n t by po i n t r esponse t o t hese

r ecomm enda t i ons i n t he f o r m o f a Tr easur y M i nu t e .

The ef fect i veness of th is proc ess is show n b y the fact that near ly

a l l o f t he Commi t t ee ' s r ecommenda t i ons a r e accep t ed and

i m p l em ent ed by the aud i t ed bod i es. In 200 0- 2001 over 90 pe r

cen t o f the Com m i t tee ' s 360 r ecomm enda t i ons w er e accep t ed .

A n d o u r f o l l o w u p w o r k s h o w s t h a t a c c e p t e d

r ecomm enda t i ons ar e i mp l em ent ed i n a l m os t eve ry case.

Spreading good practice

Ther e a r e , however , add i t i ona l ways i n wh i ch we t r y t o

p r omot e change . Fo l l ow i ng t he pub l i ca t i on o f a r epor t we

cons i de r whe t her t he r e wou l d be bene f i t i n o r gan i s i ng a

con f e r ence t o r each t he key aud i ences mor e d i r ec t l y and

spread the good pract ice more act ive ly .

I n Oc t ober 2000 , ove r a hundr ed de l ega t es f r om t he hea l t h

sector in c lu din g con sul tants, Chief Execut ives of N H S Trusts,

c l in ica l d i rectors and senior nurses at tended our a l l day

con f e r ence on h i p r ep l acement s . And , i n June , t wo hund r ed

col lege admiss ions tu tors and other senior admin is t rat i ve staf f

a t t ended our con f e r ence on i mpr ov i ng s t uden t r e t en t i on and

achievement in Engl ish fur ther educat ion co l leges.

A con f e r ence t o p r omot e t he f i nd i ngs o f ou r r epor t on

i nnova t i on and r i sk management i n gover nment depar t men t s

w a s a t t e n d e d b y a h u n d r e d t o p o f f i c i a l s f r o m c e n t r a l

governm ent , and featured session s led by M ar t in N arey, the

D i r ec to r G ener al o f H M Pri son Serv i ce and t he M i n i s tr y o f

Agr icu l ture, F isher ies and Food's Permanent Secretary, Br ian

Bender .

Com m un icat ing o ur m essages face to face to representat ives of


19/36

bod i es . Good p r ac t i ce o f

p r omot ed i n ou r pub l i ca t i on

r ead by , and b e o f p r ac t i ca l b

bod i es w e aud i t . Th i s pub l i ca

b a s e d f o c u s o n l i n e ( w w w

w h i ch h as m or e de t ai l ed gu i

a l so summ ar i se t he key po i n t

w or k o n h ea l th i n a b r i e f i ng

The w ider lessons w hich c an

in our repor t o f the f inancia

Act ion Zones. These are v

schoo l s , pa r en t s and o t he

commun i t y and p r i va t e sec t

Educa t i on and Em p l oym ent t

The examp l es o f good p r ac t i

had a r i sen suggest ed w i d

gover nment p r og r amm es i nv

n e w b o d i e s. P r i n c i p a l l y ,

understanding of the i r res

purchasing ar rangements, a

m a d e .

Poss i b l e i mpr ovement s i n a

systems w hich w e d iscover d

on i n day t o day con t ac t w i t

bo dies. Signi f i can t i ssues, ho

management le t ters or repor

f i nanc i a l aud i t wor k l ed d i r

f inancia l account ing system

made a fur ther 190 s ign i f i c

r esu l t o f ou r va l ue f o r mo ney

W e a l so m ake a con t r i bu t i o

aud i t ed bod i es t o wor k on E c r o y d , o n e o f o u r P r i n c

Depar t men t o f Hea l t h i mp l

dea l w i t h accoun t i ng p r ob l e

accoun t . Fu r t he r mor e M ar t

Genera l has been chai r ing


20/36

a p resence onthe world stage


21/36

Th e N A O ' s i n t e r n a t i o n a l r e p u t a t i o n m e a n s t h a t o u r

exper t i se and professional ism is in demand across the

w or l d . We ac t i ve l y seek oppor t un i t i es t o w or k w i t h o t he r

na t i ons to i m pr ove t he i r pub l i c aud i t and acco un t ab i l i t y. We

ar e pa i d i n f u l l f o r al l ou r i n t e r na t i ona l aud i t wo r k . Ou r

con t r i bu t i on has won m any f ri ends f o r the U n i t ed K i ngdom and

pr ov i ded oppor t un i t i es t o h i gh l i gh t t he r ange o f f i nanc i a lserv ices avai lab le f rom U K f i rms. W e a lso f ind that th is wo rk

enr i ches ou r o w n sk i l l s and b r i ngs new per spec t i ves t o app l y t o

our domest ic responsib i l i t ies.

W e provid e t ra in in g and second m ents of ou r staf f to overseas

aud i t o f f i ces , pa r t i cu l a r l y i n t he deve l op i ng wor l d and i n

eastern and cent ra l Europ ean cou nt r ies. W e have been

appo i n t ed as t he aud i t o r o f a l a r ge number o f i n t e r na t i ona lbod i es and , t h r ough our l i nks w i t h t he Eur opean Cour t o f

Aud i t o r s , we make a con t r i bu t i on t o p r ompt i ng i mpr ovement s

i n t he f i nanc i a l management o f t he Eur opean U n i on .

The C& AG i s the appo i n t ed aud i t o r f o r t he accoun t s o f a range

o f ma j o r i n t e r na t i ona l bod i es , i nc l ud i ng t he I n t e r na t i ona l

A t o m i c E n e r g y A u t h o r i t y a n d t h e I n t e r n a t i o n a l L a b o u r

O r gan i sat i on . Th i s wo r k b r ough t i n aud i t f ees o f 1 . 7 m i l l i on i n2 0 0 0 - 0 1 . H e i s o f t e n a p p o i n t e d f o l l o w i n g c o m p e t i t i o n w i t h

o t he r aud i t p r ov i de r s. The aud i t o r s o f t he U n i t ed N a t i ons have

t r ad i t i ona l l y r o t a t ed and t he C&AG was ve r y p l eased t o have

recent ly completed three successive three-year terms on the

U N Boar d o f Aud i t o r s. Th i s w or k has been l ed by ou r D i r ec to r ,

D av i d Wo odw ar d , w ho r ece i ved a CMG i n l ast year ' s B i r t hday

H onou r s l i st .

S i nce 1999 t he C&AG has been Cha i r man o f t he Wor l d Bank

M u l t i l a te r al Aud i t Adv i so r y Gr oup . The Bank set the Gr ou p up

on an exper imenta l basis in that year to advise i t on the

hand l ing o f requests for rev iew s of the Bank 's act iv i t ies f rom

the audi t o f f i ces of i t s m em ber coun t r ies. In the l ight o f the

t o i nco r por a t e t he Gr oup

f r amewor k f o r dea l i ng w i t h

coun t r i es. The M u l t i l a te r al A

Bank respond to requests f

count r ies and at the same

pr inc ip les of the Bank are sa

t o be Cha i rm an o f the Gr oup

In the past year w e have pro

tours for 195 delegates f rom

amou nt i ng t o som e 646 p ar ti

w e h o l d a n a n n u a l t r a i n i

cou nterpar ts overseas. Cou nt

Chin a, M ozam biq ue, Estoni a

Vietnam . W here w e are able i t i s usua l l y w i t h spec i fi c f und

a UK, o r Eur opean U n i on , ai

W e a lso receive man y overs

2001 , and we hand l e many

i n f o r mat i on abou t t he aud i t

exper i ence f r om our aud i t

e lsew here. For exam ple, one

w as i nv i t ed t o pa r t i c i pa t e i n

deb t management .

W e par t i c ipate on in ternat io

encour ag i ng t he sp r ead i ng o

aud i t and t he C& AG i s a me

Au d i t o r s w h i c h se t t he st

organisat ions. W e are also

O rganisation o f Sup reme A

cha i r i t s wor k i ng g r oup on

regulat ion, for exam ple. This

s i gn i f i can t r o l e i n t he i n t e r

p r o f ess i on and enab l es us

i i d l i


22/36

award -winning staff


23/36

I n f o r mat i on Syst ems Aud i t and Con t r o l Assoc i a t i on . And one o f

our IT audi t specia l i s ts , Ian Pet t i crew, co-authored def in i t i ve

g u i d a n c e o n t h e a u d i t r e q u i r e m e n t s o f i n f o r m a t i o n

management systems which the Br i t i sh Standards Inst i tu t ion

pu bl ished ear l ier th is year.

Some o f ou r peop l e make an i mpor t an t con t r i bu t i on t o t he

accoun t ancy p r o f essi on mo r e gener a l l y. O ne o f ou r f i nanc i a l

a u d i t m a n a g e r s , A n d r e w B a i g e n t , r e c e n t l y b e c a m e t h e

youngest member of the Inst i tu te of Char tered Accountants in

Eng l and and W a l es t o ga i n a pos i ti on o n t he i r Counc i l . And

M ar y Rad f o r d , who d i r ec t s ou r f i nanc i a l aud i t o f env i r onm ent ,

food and rura l a f fa i rs , became the f i r s t person to chai r the

n e w l y - c r e a t ed p u b l i c se c t o r su b - c o m m i t t ee o f I C A EW ' s

Fi nanc i a l Repor t i ng Com mi t t ee . W e a r e a l so ve r y ac t i ve w i t h i n

CIPFA. Assis tant Audi tor Gen era l , Caro l in e M aw ho od , has been

the chair of their South East Region for the past year.

Value for money skills

I n ou r va l ue f o r money wor k we use mu l t i - d i sc i p l i na r y t eams

for each invest igation . These mi ght com pr ise econo m ists, socia l

scient i sts, acc ou ntan ts and stat ist ician s as w el l as spec ial i sts in

par t i cu l ar sectors. O n m ost investigat ions these sk i l l s are

supp l ement ed w i t h ex t er na l exper ti se . And f o r m any r epor t s w e

convene a panel o f external exper ts , represent ing key groupsre levant to the study, to consul t on a l l s t ra tegic i ssues in the

i nves t i ga t i on . Fo r examp l e i n ou r wor k on r e t en t i on and

a c h i e v e m e n t i n f u r t h e r e d u c a t i o n c o l l e g e s, w e u s ed

representat ives f rom col leges, the Fur ther Educat ion Funding

Coun c i l ( now m er ged i n t o t he Lear n i ng and Sk i l l s Coun c i l ) , t he

A s s o c i a t i o n o f C o l l e g e s , t h e t h e n F u r t h e r E d u c a t i o n

D eve l opm ent Agency , and exper ts f rom t he un i ve r si t i es o f

W a rw i c k an d B i rm i n g h a m .

O ur s ta f f have p r ac t i ca l , oper at i ona l exper i ence w h i ch t hey

dr aw on w hen ana l ysi ng how w e l l aud i t ed bod i es a r e us i ng

thei r resou rces. Som e of our s taff have been recru i ted f rom job s

wher e t hey wer e i nvo l ved i n manag i ng pub l i c se r v i ces , f o r

examp l e w e r ec r u i t ed M ar k M

f rom a commissioning ro le

Au t hor i t y. O t her s have com

i ns t i t u t i ons t o p r ov i de us w i

t he C i t y oper at es w h i ch i s v i

pa r tne r sh i ps and r egu l a t i on

va l ue f o r m oney r ev i ews o f

j o i n ed th e N A O af te r w o rk i n

H i l l Samue l and Banker s Tr us

As w e l l as d r aw i ng t h i s r i ch

w e t yp i ca l l y have 70 o f ou r s

t ime. This prov ides our s ta

de l i ve ri ng p ub l i c se r v i ces an

And w e f i nd h os t o r gan i sa t i o

t he con t r i bu t i on N AO secon

secondm ent s i nc l ud e M i ke

Tr ust as a Regi ona l O per a ti o

who i s seconded t o t he C

Innovat ion and Risk Team.

W e are also c om m it ted to ensu

of the communi ty we serve, b

perspect ives of our diverse n

D iversi ty Adviser to take stock

th is v i ta l i ssue and w e are no

The C&AG commi t ted h imse

Equal i ty 's Leadership Chal len g

per sona l r espons i b i l i t y f o r

organisat ion. An d M ar tin Pf le

now chai r ing our Divers i ty S

pol icies and pract ices match t

A selection of recent ent rant

and the inst i tu t ion they jo ineU n i v e r si t y o f W a r w i c k : F

Cam br id ge; Roy Eke, U niv

U n i v e r s i t y o f O x f o r d ; B

Por t smo ut h ; H annah Co l l i s, U


24/36

We have vas t exper i ence o f p r omot i ng accoun t -

ab i l i t y and e f f i c i ency w i t h i n t he bod i es we aud i t .

A t t he same t i me w e w or k ha r d t o ensur e t ha t we

ourselves make the best possib le use of the resources that

Par l iam ent prov id es to car ry out our ro le . O ver the last ten

year s ou r wor k l oad has i nc r eased by a t h i r d wh i l e ou r cos t s

have r i sen by less than f i ve p er cent in real terms.

W e a re con t i nu i n g t o move f o r w ar d f ast i n ou r use o f

i n f o r m a t i o n t e c h n o l o g y . O u r n e w h u m a n r e so u r c e s a n d

f i nance syst em w en t l i ve i n Ap r i l t h i s year. I t w i l l p r ov i de t he

f ounda t i on f o r e l ec t r on i c ser v i ce de l i ve r y i n t he N AO , as w e l l

as help ing achi eve in ternal e f f i c iencies. There has a lso been a

sea change i n t he way we ca r r y ou t f i nanc i a l aud i t f o l l ow i ng

t he i n t r oduc t i on o f Team21 , ou r new aud i t suppor t so f t war e .

As w e l l as p r ov i d i ng econ om i es, t h i s w i l l enab l e us to i m pr ove

our se rv i ce t o aud i t ed bod i es and g i ve ou r f i nanc i a l aud i t o r s a

pow er fu l t oo l f o r f ocusi ng on key a r eas.

W e use outsourc in g across a l l t ypes of wo rk as par t o f our

e f f i c i ency p r ogr amme. Th i s a l l ows us t o b r i ng i n spec i f i c

external exper t i se, compare our costs and methods to the

pr ivate sector , and manage peaks and t roughs in the work.

Q ua l i t y r ev i ew p l ays an i m por t an t pa rt i n ensur i ng w e make

the best use of ou r resources. O n the va lue for mo ney s ide a l l

our work i s assessed by an external panel o f academics,

quality and efficiency in t

cur r en t l y fr om t he London S

i nc l udes eva l ua t i on o f t he v

sou nd ness of our conc lus ion

bo dies that have been the

encour age them t o com m en

ou t com e, i nv i t i ng suggest i on

D u r i n g t h e r e v i e w o f c

a c c o u n t a b i l i t y b y L o r d S

accep t ed , t ha t ou r f i nanc i a l

r ev i ew by t he Jo i n t M on i t o r i

inst i tu tes. W e are a l ready

a r rangement s up w i t h the J

external d imension to the r i

ar rangements we a l ready ha

And w e have used t he EFQM

high level assessm ent of ou r

we a l so used t he mode l a

p l a n n i n g .

Two of the key players f r om

new hum an r esour ces and

( le f t ) , the pro ject manager wC o l l i n R i c h a r d s , a p a y

i mp l ement a t i on o f t he pay r o


25/36


26/36

Title HoC

Asset SalesTh e Sal e o f Part o f th e U K G o l d Reserv es 8 6

Culture, Media & SportTh e M i l l en n i u m D o m e 9 3 6

A c c ess to th e V i c to r i a & A l b ert M u seu m 2 3 8

N ati o nal Lo ttery Ch ar i t i es Bo ard : G ran ts m ad e by th e N ati o nal Lo ttery Ch ar i t i es Bo ard 3 78

A c c ess to p ro p erti es gran t-ai d ed b y En gl i sh H er i tage 4 5 7

Th e D ep artm en t fo r C u l tu re, M ed i a an d Sp o rt: M ai n tai n i n g th e Ro yal Pal ac es 5 6 3

DefenceM O D : M an agi n g red u c ti o n s i n th e n u m b er o f vac an t fam i l y q u arters 4 3 5

M O D : Th e Ri sk o f Frau d in Pro p erty M an agem en t 4 6 9

M O D : Ko so vo : Th e Fi n an ci al M an agem en t o f M i li tary O p erati o ns 5 30M O D : Tra in i n g N ew Pi l o ts 8 8 0

M O D : M aj o r Pro j ec ts Rep o rt 2 0 0 0 9 7 0

M O D : M ax i m i si n g th e b en efi ts o f d efen c e eq u ip m en t c o -o p erati o n 3 0 0M O D : M aj o r Pro j ec ts Rep o rt 1 9 9 9 6 1 3

EducationEd u c ati o n A c ti o n Z o n es: M eeti n g th e C h al l en ge - 1 3 0the lessons ident i f ied f rom audi t ing the f i r s t 25 Zones

Im p ro v i n g Stu den t Perfo rm an ce: H o w En gl i sh fu rth er ed uc ati o n 2 76co l l eges can i m pr ove s tuden t r e t en ti on and ach i evem entM an agi n g Fi n an c es i n En gl i sh Fu rth er Ed u c ati o n Co l l eges 4 5 4

EnvironmentIn l an d Fl o o d D efen c e 2 9 9

General Topics

Financial M anagem ent of the European U nion 4 3 7

List of major reports publishedApril 2000 - M arch 2001


27/36

Title HoC

Home AffairsTh e G am i n g Bo ard : Better Regu l ati o n 5 3 7

H o m e O ffi c e: Co m p en sati n g V i c ti m s o f V i o l en t C r i m e 3 9 8

Paro l e 4 5 6

Pu b l i c Tru st O ffi c e: A c c o u n ts fo r year en d ed 3 1 M arch 1 9 9 9 4 1 6

International DevelopmentD ep artm en t fo r In tern ati o n al D evel o p m en t: Em ergen cy A i d : Th e Ko so vo Cr i sis 4 9 5

Modernising GovernmentSu p p o rti n g i n n o vati o n : M an agi n g ri sk i n go vern m en t d ep artm en ts 8 6 4

M o d ern i si n g Co n stru c tio n 8 7

M easu ri n g th e Perfo rm an c e o f G o v ern m en t D ep artm en ts 3 0 1

Public Private Partnership - PPPN a ti on al Sav in gs: Pu bl ic -Pr ivate Partn ersh ip w i th Siem en s Bu si ness Serv ic es 4 93

Th e D ep artm en t fo r C u l tu re, M ed i a an d Sp o rt: Th e Re-n ego ti ati o n o f th e 1 0 3

PFI - type d ea l f o r t he Royal A r m our i es M useum i n LeedsTh e Fi n an c i al A n al y si s fo r th e Lo n d o n U nd ergro u n d Pu b l i c Pr ivate Partn ersh i p 5 4

D ETR: Th e Ch an n el Tu n n el Rai l Li n k 3 0 2

Th e Fo rei gn an d Co m m o n w eal th O ffi c e: Th e N ew Bri t i sh Em b assy i n Ber l i n 5 8 5

Th e Pr i so n Serv i c e: Th e refi n an c i n g o f th e Faz ak erl y PFI p r i so n c o n tac t 5 8 4

Th e Rad i o c o m m u n i c ati o n s A gen cy ' s j o in t v en tu re w i th CM G 2 1

Regulation

O f fi c e o f th e Rai l Regu lato r: En su ri n g th at Rai l track m ai n tai n 3 97and r enew t he r a i l way ne t wor k

Th e H o u si n g C o rp o rati o n : O verseei n g Fo c u s H o u si n g A sso c i ati o n 7 4 1

Sh ad o w Strategi c Rai l A u th o ri ty : A c ti o n to i m p ro v e p assen ger rai l serv i c es 8 4 2

O FG EM : G iv i n g D o m esti c C u sto m ers a Ch o i c e o f El ec tr i c i ty Su p p l i er 8 5

O FW AT: Leak age an d W ater Effi c i en cy 9 7 1


28/36

National Audit Office 2000-2001The N a t i ona l Aud i t O f fi ce a r e f i nanced f r om f unds vo t ed by Par l i ament , w e a r e r equ i r ed t o accou

i n an annu a l Appr opr i a t i on Acco un t , ce rt i fi ed by i ndepend en t aud i t o r s and l a i d be f o r e the H ouse

200 0- 200 1 i s rep r oduced be l ow . W e r ecogn i se , as do o u r aud i t o r s, t ha t App r opr i a ti on A ccou n t s

acco untabi l i t y to Par l iamen t . Such ac cou nts prov ide assurance pure ly in re la t ion to the cash base

Par l i am ent . W h i l s t ou r Ann ua l Repor t shou l d em body our s ta t u to r y accou n t , we have p r ov i ded e

the standard format

Appropriation Account, 2000-2001 Class XVIII, B, Vote 1

Serv i c e G ran t Ex p en d i tu re Less

gra

0 0 0 0 0 0

A 2 D i rec t ex p en d i tu re: o th er c u rren t 5 3 ,9 0 0 5 3 ,6 8 6

A 3 D i rec t ex p en d i tu re: c ap i tal 1 ,4 0 0 1 ,3 4 0

G ross Total 5 5 ,3 0 0 5 5 ,0 2 6

Surplus of G ross Estim ate O ver Expenditure

D ed u c t Esti m ated Real i sed

0 0 0 0 0 0

A Z A p p ro p ri a tio n s i n A i d 1 0 ,6 0 0 1 0 ,6 0 0

Su

N et Total 4 4 ,7 0 0 4 4 ,4 2 6

Actual surplus to be surrendered 2 7 4


29/36

Exp lanatory No tes on Expend iture and Receipts

1. Expenditure I tem sSec t i on A : N a t i ona l Aud i t O f fi ce [ 5 5 , 0 2 6 , 0 0 0 ] Cu

H u m an reso u rc es 4 1

O th er ru n n i n g c o sts 1 2

C ap i tal ex p en d i tu re

5 3

2. Receipts

2 a. D eta i l s o f Rec eip ts Esti m

Receipts payable to the consol idated fund:

(a) Rec ei p ts o f c l asses au th o ri sed to b e u sed as ap p ro p ri a ti o n s i n ai d 1 0

G ross Total 1 0

A p p ro p r i ated i n A i d

N et Total

A t l b l t l t th C l id t d F d


30/36

Statement of Accounting Officer's responsibilities with respecAppropriation Account

Sec t i on 22 o f t he Exchequer and A ud i t D epar tm en t s Ac t 18 66 r equ i r es t he N a t i ona l Aud i t O f fi ce

appr opr i a t i on o f t he supp l y g r an ted f o r t ha t O f fi ce i n each year ' s Ap pr opr i a t i on Ac t . Un der t he N

Acc oun t s Com m i ssi on have appo i n t ed t he Com pt r o l l e r and Au d i t o r G ener al t o be r espons i b l e as

The account i s prepared on a cash basis and in a form prescr ibed by the Treasury for government

p r esen t t he expend i t u r e and r ece i p ts o f t he N a t i ona l Aud i t O f fi ce i n t he f i nanc i a l year.

The relevant respon sib i l i t ies of the Com pt ro l ler and Aud i tor Gen era l as Ac cou nt ing O f f i cer, inc lud

propr ie ty and regular i t y of the publ ic f inances for which he is answerable, and for the keeping of

Acc oun t i ng O f f i ce r' s M emo r andum i ssued by t he Pub l i c Accoun t s Com m i ssi on .

Statement on the System of Internal Financial Control

This statem ent i s g iven in respect of the app ropr ia t ion acco un t for C lass XV I I I, B, Vote 1. As Acc o

acknowledge my responsib i l i t y for ensur ing that an ef fect i ve system of in ternal f inancia l cont ro l i

conn ec t i on w i t h t he r esour ces conc er ned .

The system of in ternal f inan cia l co nt ro l can prov ide o nly reason able and no t absolu te assurance t

t ransact ions author ised and proper ly recorded and mater ia l er rors or i r regular i t ies are e i ther prev

w i t h i n a t im e l y p e r i o d .

The syst em o f i n t e r na l f i nanc i a l con t r o l i s based o n a f r am ewo r k o f r egu l a r m anagem ent i n f o r matadminis t rat i ve procedures inc luding segregat ion of dut ies, and a system of de legat ion and accoun

I com pr ehensi ve budge t i ng sys tems w i t h an annua l bu dge t wh i ch i s r ev i ewed by t he Pub l i c A c

I set t ing targets to m easure f inanc ia l and other per form ance;

I r egu l a r r ev i ews by t he P r i nc i pa l Fi nance O f fi ce r and t he M anagem ent Boar d o f r epor t s w

per f o r mance ;

I c l ea r l y de f i ned c ap i t a l i nvest men t c on t r o l gu i d e l i nes.

The N a t i ona l Aud i t O f fi ce has an i n t e r na l aud i t se r v i ce , wh i ch oper a tes to s t andar ds de f i ned i n t h

M anua l . The wo r k o f t he i n t e r na l aud i t se r v i ce i s i n f o r med by an ana l ysi s o f the r i sk t o w h i ch t he


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Audit Certificate and Report to the House of Commons

W e cer ti f y t ha t we h ave aud i t ed t he f i nanc i a l s ta t em ent s on pages 26 t o 27 under t he Exchequer a n d t h e N a ti o n a l A u d i t A c t 1 9 8 3 .

Respec t i ve r espon si b i l i t i es o f t he Acco un t i ng O f fi ce r and Aud i t o r

As descr ibed on page 28 the Account ing Of f i cer i s responsib le for the preparat ion of the f inancia l

regular i t y of f inanc ia l t ransact ion s. The Acco un t ing O f f i cer i s a lso respo nsib le for the statement o

con t r o l o n p age 28 . O ur r espon si b i l i t i es as i ndependen t aud i t o r s, a r e est ab l i shed b y s ta t u te and g

Audi t ing Standards.

W e repor t our opin ion as to wh ether the appro pr ia t ion ac cou nt prop er ly presents the expend i ture

Vote.1, and whether in a l l mater ia l respects the expendi ture and receipts have been appl ied to th

Par l i am ent and con f o r m t o t he au t ho r i t i es w h i ch gover n t hem . We a l so r epor t i f, i n ou r op i n i o n , p

no t been k ep t , o r i f we h ave no t r ecei ved a l l t he i n f o r mat i on and exp l ana t i ons we r equ i r e f o r ou r

W e r ev i ew w he t her t he st a tement o n page 28 r e fl ec t s com p l i ance w i t h Tr easur y ' s gu i dance ' Cor p

the system o f in ternal f inanc ia l co nt ro l ' . We repo r t i f i t do es no t meet the requi rem ents speci f ied

m i sl ead i ng o r i nc ons i st en t w i t h o t he r i n f o r mat i on w e a r e awar e o f f r om o ur aud i t o f t he f i nanc i a l

Basis of opinion

W e cond uc t ed ou r aud i t i n accor dance w i t h U n i t ed K i ngdom Aud i t i ng St andar ds. An aud i t i nc l u dof ev idence re levant to the amounts, d isc losures and regular i t y of f inancia l t ransact ions inc luded

a lso inc lu des an assessm ent of the judgem ents m ade by the Acc ou nt ing O f f i cer in the preparation

W e p l anned and per fo r m ed our aud i t so as t o ob t a i n a l l t he i n f o r mat i on and exp l ana t i ons w h i ch

order to p rov id e us wi th suf f i c ient ev idenc e to g ive reason able assurance that the f inanc ia l s tatem

m isstatem ent , w hether caused by er ror , or by f raud or o ther i r regular i t y and that , in a l l m ater ia l re

r ece i p ts have been app l i ed t o t he pu r poses i n t ended by Par l i am ent and co n f o r m t o t he au t ho r i t i es

our o p i n i on w e a l so eva l ua t ed t he over al l adequacy o f t he p r esen t a ti on o f i n f o r m at i on i n t he f i na

Opinion

I n o u r o p i n i o n :


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The National Audit Office ac coun t in m or

2 0 0 0 -2 0 0 1

0 0 0

Receipts (No te 2)

Par l i am en tary Co n tr i b u ti o n 4 4 ,4 2 6

In c o m e fro m fee au d i t w o rk 1 0 ,4 3 9O th er In c o m e 4 9 5

5 5 ,3 6 0

Less: Ex c ess A p p ro p r i ati o n s i n A i d (3 3 4 )

5 5 ,0 2 6

Payments

D i rec t Staff C o sts (n o tes 3 ,4 an d 6 ) 3 5 ,0 4 1

Co n su l tan ts 6 ,4 5 2

Rem o val s an d o th er d i rec t c o sts 1 5 5

Trav el an d Su b si sten c e 2 ,3 6 8

Rec ru i tm en t an d Trai n i n g 2 ,0 2 3

A c c o m m o d ati o n C o sts 3 ,6 4 9

Eq u i p m en t 1 ,9 5 6

Su p p l i es an d Serv i c es 1 ,9 8 9

Ex tern al A u d i to rs rem u n erati o n 5 3

To tal Ru n n i n g Co sts 5 3 ,6 8 6

Cap i tal Ex p en d i tu re 1 ,3 4 0

5 5 ,0 2 6

A C C O U N T I N G P O L I C I E S

1. Accou n t s ar e p r epared on a cash b asi s, i n accor dance w i t h gov

convent ions. Capi ta l i tems are charged in fu l l in the year of purch

2 . The N a t i ona l Aud i t O f fi ce m akes no char ge to gover nm ent dep

on ac cou nts wh ich are requi red to ref lect the fu l l cost o f the i r ope

Th 243 f i d i t i th U i t d Ki d Th


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The sa l a ry o f t he C& AG i s pa i d f rom t he Conso l i da t ed Fund and i s no t t he r ef o r e i nc l uded i n t he

N a ti o n a l A u d i t O f fi c e a c c o u n t .

(i i ) The sa l a ri es o f t he Na t i ona l Aud i t O f fi ce ' s Management Boar d w er e w i t h i n t he f o l l ow i ng

bands :

2 0 0 0 -2 0 0 1 1 9 9 9 -2 0 0 0

2 0 ,0 0 0 -2 9 ,9 9 9 2 -

5 0 ,0 0 0 -5 9 ,9 9 9 - 1

6 0 ,0 0 0 -6 9 ,9 9 9 1 -7 0 ,0 0 0 -7 9 ,9 9 9 - 1

8 0 ,0 0 0 -8 9 ,9 9 9 3 4

9 0 ,0 0 0 -9 9 ,9 9 9 2 2

1 0 0 ,0 0 0 -1 0 9 ,9 9 9 1 -

1 1 0 ,0 0 0 -1 1 9 ,9 9 9 1 1

4. O ur s taf f and c on sul tants were used as fo l low s:

2 0 0 0 -2 0 0 1 1 9 9 9 -2 0 0 0

% %

C erti fy i n g an d rep o rti n g o n ac c o u n ts 5 6 5 7

Val u e fo r M o n ey w o rk 2 5 2 4

Ex am i n i n g an d rep o rti n g o n r i sk s to f i n an c i al 5 5

system s, regular i t y and prop r ie ty

O th er w o rk fo r Par l i am en t an d th e Pu b l i c 1 3 1 3C o m p tro l l er Fu n c ti o n 1 1

5 . EXTERNA L AUD I TO RS' REM U N ERATI O N

This consists of :

2 0 0 0 -2 0 0 1 1 9 9 9 -2 0 0 0

0 0 0 0 0 0

A u d i t Fees 1 2 1 2

O th er A u d i t Serv i c es 8 8

Val u e fo r m o n ey au d i t 3 3 2 5

5 3 4 5


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Management BCom ptroller and Auditor G

Si r Joh n Bo urn KCB

Deputy Com ptroller and Aud it

Ti m B ur r

Deputy Aud itor Gener

M art in Pf leger

Assistant Auditors Gene

Jeremy Co lm an

W endy Kenw ay -Sm i th

Jim M arsha l l

C a r o l i n e M a w h o o d

M ar ti n Si nc l a i r

Director of Corporate PoD a vi d C o r n e r

Fo r fu r t he r i n fo rma t i on abou t t he N a t i ona l A ud i t O


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Layou t and Produc t ion by N AO In fo rma t ion Cen trePhotography by Jon Barlow

Pr in ted by M i te r Press

D G r e f: 9 5 5 1 R A


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NAO (Britain) Annual Report with cash basis accounts (last year)

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Transcript of NAO (Britain) Annual Report with cash basis accounts (last year)