PracticeAuditAuditors attack MoD over spending

Auditors attack MoD over spending

Auditors have slammed evidence of huge delays and overspending on defence budgets following a report from the National Audit Office today.

Link: MoD accounts cleared

Sir John Bourn, head of the NAO, said that in the last year costs on the MoD’s 20 biggest equipment projects have increased by £1.7bn. On average, the projects have been delayed by three months each.

The NAO said it expected to see more problems on these projects in future. The total cost of the projects is now expected to be £50bn, 14% higher than original estimates.

Many of the problems are linked to a lack of time and resources spent in the assessment phase, the investigation found.

Projects less than halfway through their procurement are already expected to be delivered later or to cost more than approved. The 15 most recent projects are said to be moving rapidly towards their ‘not to be exceeded’ levels with six already in breach.

Sir John Bourn said: ‘There must be greater certainty as to when equipment will be ready for service and there must be greater control of costs. If not, some capabilities may have to be foregone or delayed to compensate for rising costs. It is of particular concern that newer projects are already showing increases.’

Related Articles

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

5d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

2w Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

2w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor