Statement by TUV leader Jim Allister:

 “I am appalled by the litany of serious failings within OFMDFM exposed by the Comptroller and Auditor General in a report brought to the Assembly today. “Deficiencies and inconsistencies” in funding arrangements for groups in receipt of £7,476,620 directly from OFMDFM are highlighted and even the Department’s own internal audit discovered

·         a lack of evidence to support the approval of awards to bodies funded directly by the Department;

·         weaknesses in the Letters of Offer issued to them;

·         the absence of documentation to support requests for the drawdown of funding and

·         weaknesses in the verification and vouching of claims for funding

“The report also finds that over three million pounds was spent by the Department on the Maze shrine project “without conforming to the authorities” that should govern such spending.

“Furthermore, on 15th June I wrote to the Comptroller and Auditor General drawing his attention to an answer I received to an Assembly question.

“The question asked and answer received were as follows:

To ask the First Minister and deputy First Minister, in relation to procurement by their Department, (i) on how many occasions, since May 2007, a supplier has been secured before authorisation by the Accounting Officer and why; and (ii) the level of expenditure in each case.

In relation to procurement, Accounting Officer authorisation is only specifically required for Single Tender Actions.

Since May 2007, OFMDFM secured eight suppliers through single tender action before authorisation by the Accounting Officer was secured. These assignments had a combined value of £373,716. The table below details the level of expenditure in each case.

		Expenditure
Financial Year	Single Tender Action	£
2008-09	Safeguarding Policy	13,510
2008-09	Consultation of Parents	4,500
2008-09	Public Appointment Survey	6,965
2008-09	Review of Capital Asset Realisation Taskforce	51,750
2009-10	Play and Leisure Policy	270,000
2010-11	NI Water Investigation	24,500
2010-11	Software Licence and telephone support	2,150
2010-11	Software Maintenance	341
	Total Expenditure	£373,716

In conjunction with the Minister for Finance and Personnel, we asked Ed Vernon to lead the Capital Assets Realisation Taskforce. The Northern Ireland Water Investigation was taken by us on behalf of the Executive due to the specialist nature of the assignments.

Failure to obtain prior Accounting Officer approval in the remaining cases was an oversight. Retrospective Departmental Accounting Officer approval has been obtained in each case.

Guidelines on the use of single tender actions have been re-issued to all staff in the Department and its Arms-Length Bodies. Staff have been reminded that any proposal to procure through Single Tender Action must be supported by a case to the Departmental Accounting Officer, setting out the rationale and justification for doing so. In considering each case, the Accounting Officer takes account of the professional advise of Central Procurement Directorate and the Departmental Solicitors Office of the Department of Finance and Personnel. Departmental Accounting Officer approval is required before awarding any contract through a single tender action.

“I felt that to describe this as “an oversight” – considering how often it has happened and the sums of money involved - was a serious understatement to say the least. Accordingly, I asked the Northern Ireland Audit Office to investigate and advise me of the outcome. Mr Donnelly has informed me that while the Audit Office knew of some of the transactions my question has uncovered other cases where the necessary Accounting Officer approval was not received prior to payment of which they were unaware.

“I am pleased that the Audit Office will now investigate the documentation in relation to each case. They are to report back with their findings by the end of July.”