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Standards of financial management in the Welsh central government and NHS sectors remain generally good and continue to get better, according to the Auditor General’s annual summary report into their accounts. But, the report calls for improvements to controls over grant-spending, asset management and payment standards.
The report summarises the 2004/2005 accounts of the National Assembly for Wales and its related bodies. And, for the first time, this year it includes the accounts of local NHS bodies in Wales - to reflect the Auditor General’s new role as the statutory external auditor of these bodies. The report also covers other financial audit work carried out in this period, including the audit of European-funded projects.
Overall, the report found that accounts are being prepared more promptly and that there are improving arrangements for financial management. Central government bodies are making good progress in relation to the management of risk and the requirements of the Freedom of Information Act and there are signs that financial management of EU-funded projects is improving. Also, Value Wales is continuing to help secure better value for money from public sector procurement - reporting actual savings of £18 million in 2005.
The report describes how the Auditor General will supplement his work next year with extra risk-based reviews. This work is to ensure that there will be no reduction in the degree of financial scrutiny applied to some areas of spending following the Assembly’s structural reforms, such as the merger of former sponsored bodies into the Assembly Government.
Jeremy Colman , Auditor General for Wales said today,
"My report highlights encouraging signs of improvement, but there is certainly no room for complacency. All central government and NHS bodies will need to act on my recommendations regarding systems of control, to ensure that standards are
maintained. Recent structural reforms in Wales place an even greater premium on the availability of sound management information to make them work."
Notes to Editors:
This report summarises the results of the Auditor General’s financial audit work relation to the 2004/2005 accounts of the National Assembly and its related public bodies and, for the first time this year, also the accounts of local NHS bodies in Wales.
The Auditor General is required by statute to examine and certify the annual accounts of the National Assembly for Wales, its sponsored public bodies and certain other public bodies, including local NHS organisations within Wales and to report his audit findings and opinions to the Assembly.
For the 2004/2005 year of account, the Auditor General audited 65 accounts in the central government and NHS sectors. The various sets of annual accounts together contained expenditure of some £11.9 billion financed by the Welsh block budget.
The report does not deal in detail with the performance audit work of the Wales Audit Office.
The Wales Audit Office is independent of government and is responsible for the annual audit of some £19 billion of annual public expenditure.
Its mission is to promote improvement, so that people in Wales benefit from accountable, well-managed public services that offer the best possible value for money. It is also committed to identify and spreading good practice across the Welsh public sector.
The Wales Audit Office was created in April 2005 through the Public Audit (Wales) Act, 2004, which expanded the functions of the Auditor General for Wales and enabled the transfer of staffs from the Audit Commission in Wales and National Audit Office in Wales to his employment.
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For more information please contact Lisa Smyth on 029 2026 2673 or email lisa.smyth@wao.gov.uk
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