NAO blames inadequate IT for budgeting problems

In a report titled Progress in Improving Financial Management in Government , the official spending watchdog says there is rarely an automatic cascade of data from management accounting systems to resource accounts. Whitehall departments often use multiple data systems to piece together accounting information manually, which puts the control of transactions and the accurate presentation of these transactions in accounts at risk. In addition, the NAO says there is a no consistent approach to the configuration of Oracle-based accounting systems across government. It takes the Ministry of Justice as one example, where multiple financial systems and incomplete financial reports affected the ability to monitor its overall financial position and its awareness of assets, liabilities and future cash requirement. Amyas Morse, head of the National Audit Office, said: "Despite a clear commitment from the centre, we do not yet see good financial management strongly positioned as an indispensable part of departments' deficit reduction strategies," he said. "And we do not feel that the culture of the civil service has yet taken information-led management, and financial management in particular, to its heart." This article is published by Guardian Professional. For updates on public sector IT, join the Government Computing Network here.