MoJ counts its debts

The Ministry of Justice (MoJ) has come under fire from the National Audit Office (NAO) after its uncollected debts were found to have increased by £400m, according to NAO’s 2011 report.

The report said there had been little change in how the MoJ monitors and collects assets due under confiscation orders, and the amount of outstanding debt had increased by almost £400m in 2010–11.

The audit shows that while financial management is now more central to the MoJ’s operation, and the quality and consistency of its financial planning has improved, it still has gaps in its financial reporting skills. It was one of only two government departments that failed to produce their financial accounts by the summer recess.

Amyas Morse, head of NAO, said good financial management needed to become the norm at the MoJ. “The Ministry has made considerable and welcome improvements to its financial management since I last reported. This is crucially important if the Ministry is to meet its cost reduction targets,” he said.

“However, the Ministry should not underestimate how much there is still to do. Collection of fines and assets due has not improved and the Legal Services Commission needs to reduce the error rate in its payment of legal aid.”