The Ministry of Defence failed to produce accurate resource accounts due to ‘fundamental uncertainties and errors’, according to the National Audit Office.
As a result, the NAO has refused to give an audit opinion on the MoD accounts for 1999/2000.
This was the first time the MoD had its resource accounts formally audited by the NAO.
Sir John Bourn, head of the NAO, recognised the move had been ‘a colossal task’.
The NAO’s report criticised lack of audit evidence available covering #90bn of assets and highlighted difficulties with the ministry’s logistics supply systems which were not designed to provide financial information.
It also revealed that errors and inconsistencies in the 1999 balance sheet remained uncorrected and there were doubts about the accuracy of charges in the operating cost statement for 1999/2000.
An MoD spokesperson said: ‘We have had our weakness pointed out and expect to see improvements next year.’
For more on this story go to www.nao.gov.uk.
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