PracticeAuditWhitehall wastes money on old accounting tricks

Whitehall wastes money on old accounting tricks

Outmoded accounting techniques in Whitehall means government departments are wasting some of the extra money that has been earmarked for public services.

Link: Head of government accounts to retire

A National Audit Office report has revealed that of the 46 departments only a quarter have put resource accounting techniques in place.

All should have done so by April last year.

Many though still use a cash-based management system.

And those that have not are largely failing to take advantage of new rules introduced by chancellor Gordon Brown to carry forward unspent cash from one year to the next.

Many departments still rely on spending splurges at the end of the financial year, said the NAO.

Edward Leigh, chairman of the Public Accounts Committee, said departments failing to use the new methods were ‘like someone who has been given a Ferrari but only uses it for the school run’.

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