Northern Ireland Audit Office Annual Report and Accounts 2024 - 2025 HTML

Annual Report and Accounts 2024–25

Northern Ireland Audit Office

Independence and excellence in audit to improve public services

Contents

Performance Report

Overview

The purpose of this overview is to provide a short summary of the Northern Ireland Audit Office’s structure, purpose and performance during the year…

Chairperson’s Foreword

As newly appointed Chair of the NIAO Advisory Board, I am delighted to present…

Accountability Report

Financial Statements

Statement of Financial Position

£00031 March 202531 March 2024
Total Assets7,5627,526

© Crown copyright 2025 – Northern Ireland Audit Office

 

Annual Report and Accounts 2024–25

Northern Ireland Audit Office

Page 1

Annual Report

and Accounts

2024 - 25

Independence and excellence in

audit to improve public services

Page 2

We work to ensure public money is spent properly.

Building positive open relationships based on trust

and respect is the basis for our work. We are diligent

and exemplary in our practice, aiming to uphold the

highest professional and ethical standards.

We pride ourselves on being tenacious, inquisitive

and open-minded so that we are continuously

learning and improving but more importantly,

constructively saying what needs to be said

and doing what needs to be done.The Northern Ireland Audit

Office’s vision is to provide

independence and excellence in

audit to improve public services.

Annual Report and Accounts 2024 - 25

Page 3

Laid before the Northern Ireland Assembly

by the Department of Finance under

paragraph 4(2) of Schedule 2 to the

Audit (Northern Ireland) Order 1987.

2 July 2025Northern Ireland

Audit Office

Annual Report

and Accounts

For the year ended 31 March 2025

Annual Report and Accounts 2024 - 25

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© Crown copyright 2025

This publication is licensed under the terms of the Open Government Licence v3.0

except where otherwise stated. To view this licence, visit:

www.nationalarchives.gov.uk/doc/open-government-licence/version/3/

Where we have identified any third party copyright information, you will

need to obtain permission from the copyright holders concerned.

This publication is available on our website at www.niauditoffice.gov.uk.

Any enquiries regarding this document should be sent to us at

Northern Ireland Audit Office, 106 University Street, Belfast, BT7 1EU,

or e-mail: info@niauditoffice.gov.uk or tel: (028) 9025 1000.

Isbn: 978-1-0682378-2-9

Annual Report and Accounts 2024 - 25

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Performance Report

Overview

• Chairperson’s Foreword

• Comptroller and Auditor General’s Statement

About the NIAO

Performance analysis

High Quality Public Audit And Improving Outcomes And Accountability

Investing In Our People And Resources

Resource Accounts 2024-25

Accountability Report

Corporate Governance Report

• Directors’ Report

• Statement of Accounting Officer’s Responsibilities

• Governance Statement

Remuneration and Staff Report

• Remuneration Policy

• Staff Report

Assembly Accountability and Audit Report

• Statement of Outturn against Assembly Supply (Audited)

• Other Assembly Accountability Disclosures (Audited)

• Independent Auditor’s Certificate and Report to the Northern Ireland Assembly

Financial Statements

• Statement of Comprehensive Net Expenditure for the year ended 31 March 2025

• Statement of Financial Position as at 31 March 2025

• Statement of Cash Flows for the year ended 31 March 2025

• Statement of Changes in Taxpayers’ Equity for the year ended 31 March 2025

• Notes to the Resource Accounts7

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108ContentsContents

Annual Report and Accounts 2024 - 25

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Contents

Annual Report and Accounts 2024 - 25

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Performance

ReportPerformance Report

Annual Report and Accounts 2024 - 25

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8Performance Report

Overview

The purpose of this overview is to provide a

short summary of the Northern Ireland Audit

Office’s structure, purpose and performance

during the year. It also sets out the key

risks to the achievement of our objectives,

providing sufficient understanding of

our organisation and its performance.

Chairperson’s Foreword

As newly appointed chair of the NIAO Advisory

Board, I am delighted to present the Annual

Report and Accounts for the year ending 31

March 2025 on behalf of the Advisory Board.

The role of the Advisory Board is to provide

objective and impartial advice to the

Comptroller and Auditor General (C&AG)

and to assist in the discharge of her functions.

This involves oversight of the NIAO and its

administrative functions but does not extend

to the independent reporting on the Northern

Ireland Assembly’s use of public money.

This remains the sole responsibility of the

C&AG under the relevant legislation.

The work of the NIAO is impactful and

influential and we work closely with public

bodies to understand the challenges they

face and help them make improvements in

public services. We do this in a number of

ways including the financial audits of some

150 bodies providing assurance in relation

to approximately £25 billion of public funds.

Our evidence-based public reporting details

whether economy, effectiveness and efficiency

has been achieved in the use of public funds.

This work is of great value to the NI Assembly

through the Public Accounts Committee

which scrutinizes departmental public

spending, based on our reports. Our work in dealing with concerns raised

and Counter Fraud support helps protect

public money and the production of our

Good Practice Guides assist public bodies

in improving performance.

Our 130 staff work diligently in these areas

throughout the year and I would take this

opportunity to thank them for their endeavours.

We rely so much on their commitment and

expertise. Our determination to continue

to improve what we do for those we serve is

outlined in our Corporate Plan 2024-29 which

clearly sets out our vision, purpose and our

3 Corporate Priorities which present both

challenges and opportunities.

We work hard to deal with the challenges

of a competitive labour market in order to

recruit and retain the high-quality staff needed

for the work we undertake. Our work with

the NI Assembly and its committees requires

significant input from our staff. We are pleased

to assist the NI Assembly in its work and have

used innovative approaches in dealing with the

competitive labour market, introducing new job

roles including that of performance auditor to

assist with our public reporting programme.

We seek to be an employer of choice and

were pleased to retain our IIP accreditation

last year. We will continue to transform

the way we work by embracing technology,

ensuring our staff have the technical and

leadership skills needed to achieve our

objectives and very importantly ensure we

are responsive to client needs. The issues of

quality of our work and adhering to auditing

standards is one of our top objectives and

we invite independent assessors on a yearly

basis to monitor same. We are also mindful

of our impact on the environment, as well

as supporting clients in reducing their

carbon footprint.

Annual Report and Accounts 2024 - 25

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Performance Report

The Advisory Board has and will continue

to assist the C&AG in implementing the

Corporate Plan with members providing

objective advice, drawing from their own

experience and expertise in this endeavour.

The Board is committed to supporting the

organization in its pursuit of best practice

and maintenance of the highest professional

standards. The governance framework in the

organization is strong and transparent. Board

members are involved and valued and have

been delighted over the past year to see all

that has been achieved, as presented in this

Annual Report.

A new Board has been in place from May

2025 and I would like to take this opportunity

to thank the outgoing members for their

hard work, dedication and expertise which

has been invaluable. As the new Chair from

December 2024, I would like to thank the

previous Chair, Martin Pitt, for his expert

Chairmanship, commitment, expertise and

indeed good humour over the six years of

his tenure. As a previous Board member,

I learned much from his wise counsel and

this is appreciated.I know that there will be challenges in the

future, some we can predict others not so

apparent. I also know that we will continue

to face these challenges and ensure we

achieve our vision and purpose in line with

the values that underpin all that we do.

Marie Mallon OBE

Chair, NIAO Advisory Board

30 June 2025

Annual Report and Accounts 2024 - 25

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10Performance Report

Comptroller and Auditor

General’s Statement

I am delighted to present the Northern Ireland

Audit Office’s Annual Report and Accounts for

2024-25. The year began with the publication

of the NIAO’s new five-year Corporate Plan,

which has provided a renewed purpose and

determination to deliver independence and

excellence in audit to improve public services.

Amidst a backdrop of increasing and changing

demands on public services, combined with

ongoing budgetary constraints, this work remains

both highly important and highly valued by our

stakeholders, and this report outlines some of our

key accomplishments over the 12-month period.

Our financial audits remain at the forefront of

NIAO delivery, with 154 accounts certified this

year across central and local government bodies.

As well as the volume and variety of audits we

have completed, the quality and continuous

improvement of our work has remained an

absolute priority. This is reflected in our continued

commitment to adhering to the International

Standard on Quality Management (ISQM 1), as well

as our participation in the independent external

review by the Institute of Chartered Accountants

in England and Wales. I also welcome the positive

responses received directly from audited bodies

via our feedback survey, both in relation to how

the NIAO conducts audits, as well as the impact

this work has on improving public services.

We have also continued to deliver against our

Public Reporting Programme, with a total of 26

reports published during the year. In line with our

identified public reporting themes, these reports

have spanned a wide range of topical issues,

including skills development, homelessness,

water quality, ambulance handovers, managing

the schools’ estate and road openings by utilities.

These reports include practical, evidence-based

cross-cutting and strategic recommendations for

the public sector.

The NIAO continues to play its role in providing

assurance to the Assembly on the stewardship of

public funds, working particularly closely with the

Public Accounts Committee (PAC). To date, the PAC has completed or commenced

eight Inquiries based on NIAO reports. The

Committee’s work is crucial for delivering scrutiny

of public expenditure and ensuring that services

are delivered efficiently and effectively, and our

office has provided ongoing assistance throughout

the year to the Committee in their valuable

and important scrutiny role. I also welcome our

ongoing and growing engagement with other

Assembly Committees, including the constructive

relationship with the NI Assembly Audit

Committee, which governs the NIAO’s work.

We look forward to continuing to support

MLAs and Assembly staff throughout the

remainder of this mandate and beyond.

This year has also seen the NIAO embrace

opportunities to enhance and strengthen the

reach and impact of our work across a wide range

of external stakeholders. The Office’s participation

in a variety of conferences, speaking events and

collaboration opportunities has allowed us to

promote good practice, share audit findings and

build awareness with representatives from across

a wide range of public, private and third-sector

organisations affected by our work. Our Insight

Exchange series of events has given NIAO staff a

chance to interact, learn from, and inform experts

and leaders from academia, regulatory bodies,

industry and politics (both local and national),

helping us to further understand the challenges

facing public services and assist improvement.

We are assisted greatly in our work by this

collaborative and engaging approach and

I am very grateful to all those who have

helped us throughout our work this year.

We also continue to engage with our local

universities and further education colleges

around attracting and developing emerging

accountancy talent, and I am pleased that we

have seen the continued success of our graduate

trainee and higher level apprentice trainee

programmes throughout the year. I look forward

to continuing to widen our skills and training

offerings in the future.

Annual Report and Accounts 2024 - 25

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Performance Report

The work of the NIAO continues to attract and

retain people who are committed to public

service. I want to express my sincere gratitude

to all of the NIAO staff, whose continued

dedication and professionalism has been

steadfast. Investment in our people is one of the

NIAO’s strategic priorities and the continued

roll-out of our People Strategy and associated

strategies has demonstrated the commitment to

staff development. This has included training and

learning for financial audit staff in response to

changing audit standards, development of public

reporting skills for staff working in this area, as

well as development in other specialist areas such

as sustainability, counter-fraud and IT Audit. We

have continued to deliver a programme of staff

wellbeing activities and strengthened our focus

on equality, diversity and inclusion. This work, and

the colleagues who support and deliver it, play a

crucial role in nurturing a working environment

that allows NIAO employees to grow and flourish. Finally, I would like to pay tribute to our Board,

which has seen significant change, with the

departure of our former Chair, Martin Pitt. Martin’s

commitment to supporting the work of the NIAO,

and ensuring it delivers to the highest standards,

has been evident. He has also been a continued

source of support and advice to me personally

since I took up post as Comptroller & Auditor

General. I would like to express my sincere

gratitude to Martin for his immense contribution

to public audit in Northern Ireland over the six

years of his tenure, and similarly to the other

Non-Executive Members whose time with the

NIAO Advisory Board came to an end during

this year.

I am delighted to welcome our three new Non-

Executive Members, and to also congratulate our

new Chair, Marie Mallon OBE, on her appointment,

following her period of dedicated service on the

Board as a Non-Executive Member. I am confident

that Marie, together with the rest of the Board, will

continue to offer the leadership, encouragement

and positive challenge that will be vital as the

NIAO continues in delivering its purpose of making

sure public money is spent properly.

I look forward to the year ahead and the continued

contribution to public services by the Northern

Ireland Audit Office.

Dorinnia Carville Comptroller and Auditor General

for Northern Ireland

Dorinnia Carville

Comptroller and Auditor General

for Northern Ireland

30 June 2025

Annual Report and Accounts 2024 - 25

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12Performance Report

About the NIAO

Who We Are

The role of the C&AG is to help the Northern Ireland Assembly in its scrutiny of government

and to assist in the process of ensuring that public organisations are effective, efficient and

accountable. The C&AG must be independent of government and operate in an apolitical

manner. In fulfilling the role of the Assembly’s auditor, the C&AG is an Officer of the House.

The Northern Ireland Audit Office (NIAO) supports the C&AG in the delivery of her functions.

Our aim is to achieve independence and excellence in audit to improve public services.

We work with the public sector in overseeing and providing assurance to the Northern

Ireland Assembly that public money is spent properly.

A senior member of the NIAO team is designated as the Local Government Auditor

and independently audits bodies in the local government sector, supported by the

NIAO’s resources.

Why We Exist

Our vision (why we exist) is to provide independence and excellence in audit

to improve public services.

What We Do

Our purpose (what we do) is making sure public money is spent properly.

This is achieved through conducting our key activities.

Annual Report and Accounts 2024 - 25

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Performance Report

Independent support to enable the Assembly, particularly the

Public Accounts Committee, to hold public bodies to account.

The NIAO promotes good practice in governance

arrangements and helps to combat fraud.Support to the Northern Ireland Assembly

Audit of the annual accounts of Central and Local Government bodies.Financial audits of Central and Local Government Bodies

Focus on key issues facing the public sector in Northern Ireland.Public reporting on value for money

Promoting Good Practice and Fraud Awareness

Authorising the issue of money from the Northern Ireland

Consolidated Fund to enable Northern Ireland Departments

to meet their necessary expenditure.Comptroller Function

Annual Report and Accounts 2024 - 25

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14Performance Report

How We Act

Our core values (how we act) provide assurance to the public on the integrity with which we work.

ValuesAuthoritative Partnership

Curious Truthful

Annual Report and Accounts 2024 - 25

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Performance Report

Together, the NIAO corporate vision, mission and values drive us to create IMPACT through our work.

IIndependence and excellence in audit

to improve public services.

MMaking sure public money is spent properly.

PPartnership...(collaborative, engaging, respectful)

building positive open relationships based on trust

and respect as the basis for how we work.

AAuthoritative...(credible, professional, evidence based)

diligent and exemplary in our practice, upholding the

highest professional and ethical standards.

CCurious...(examining, interested, outwardlooking)

tenacious, inquisitive, and open-minded so that

we are continuously learning and improving.

TTruthful...(courageous, fearless, upfront)

constructively saying what needs to be said

and doing what needs to be done.Vision

Purpose

Values

Annual Report and Accounts 2024 - 25

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16Performance Report

Our Corporate Priorities and Outcomes

Our purpose and vision are delivered through our corporate priorities (what we will focus on) and

intended outcomes (what we want to see in the future) supported by our values and key activities.

This is set out in our Corporate Plan for the period 2024-29.

Our accountability

The NIAO is accountable to the NI Assembly through the Northern Ireland Assembly Audit

Committee (NIA AC). The latter has a Memorandum of Understanding on the governance

and accountability of the Office which is being updated by the NIA AC. The Memorandum

which is available on the Northern Ireland Assembly website sets out:

• the values and standards of the NIAO in carrying out its work;

• the internal governance arrangements of the NIAO and, in doing so, provides confidence

to the Assembly and wider public regarding the arrangements for the governance and

accountability of the NIAO; and

• the commitments of the C&AG and the NIAO to the NIA AC on the actions they will

take to uphold transparency and manage public money effectively.Priorities Outcomes

Annual Report and Accounts 2024 - 25

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Performance Report

Key risks and issues

Resourcing continues to be a key challenge for the NIAO in a

competitive market for skilled staff. Nonetheless we grew our

staff base from a Full Time Equivalent (FTE) of 116 to 120 and

our associated skills in 2024-25.

We also adopted innovative approaches to recruitment and

have increased our social media presence to enhance our

visibility as an Investors in People (IiP) accredited organisation.Resourcing

The increasing rigor of the new auditing standards has led to a greater

need for highly skilled resources to identify and address the key risks to

the figures in the financial statements. These challenges, and how we are

addressing them, are set out in more detail in this Performance Report. Quality

The NIA AC completed a review of the governance and accountability

arrangements for the NIAO prior to the end of the 2017-2022

mandate. Full implementation of the Review’s 16 recommendations

directly relevant to the NIAO is dependent on the Committee

proposing new or updated legislation. Key recommendations include:

• the formal separation of the NIAO from the C&AG and its

establishment as a body corporate in the form of a statutory board;

• the appointment of board members by the NIA AC;

• the setting of the tenure of the new C&AG as a ten-year non-

renewable term;

• the appointment of a single public sector auditor; and

• the establishment of a code of practice between the board

and the C&AG.Future Changes in Accountability

In the meantime, the current arrangements of an Advisory Board providing objective and

impartial advice to the C&AG and assisting her in the discharge of her functions are being

maintained. To provide support in these functions, the Advisory Board retains both an Audit

and Risk Assurance Committee and a Remuneration Committee to advise on relevant issues.

Annual Report and Accounts 2024 - 25

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18Performance Report Performance Report

Performance analysis

The NIAO’s Corporate Plan 2024-29, published in April 2024, is available on our website.

It sets out the Office’s ambitions, priorities and key activities up to 2029. Our performance

in 2024-25 has been measured against this Plan and our Business Plan for the year.

Priority ActivityAnticipated

OutcomeKPI PerformanceAchieved in

2024 - 25

Priority 1: High-

Quality

Public Audit

Support, enhance

and promote

high standards

in public service

administration,

accountability

arrangements

and financial

management.Provide assurance

through the timely

delivery of our

annual financial

audit programme

to International

Standards

on Quality

Management.

Our stakeholders

have confidence in

the NIAO’s statutory

role in providing

oversight and

assurance on public

sector spending.1. Financial audits

are completed

within 12 months

of year end.1. 124 accounts for 2023-24 and 30 prior year accounts were certified in 2024-25.

At 31 March 2025 we have 22 backlog accounts where 77% of the delays are

outside our control.1. Partially

achieved.

2. NIAO’s financial

audits comply with

the International

Standards

on Quality

Management.2. Five accounts were subject to independent external review by the Institute of

Chartered Accountants in England and Wales. Grading and recommendations

are set out in the NIAO Quality Report.2. Fully

achieved.

Holding the public

sector to account

through the delivery

of quality, timely

and accurate

reports.3. Public reports are

published as set

out in our Forward

Work Programme

and comply with

quality assurance

processes.3. During 2024-25, a total of 26 reports were produced:

• 12 Public Reports

• 1 Good Practice Guide

• 1 National Fraud Initiative Report

• 12 Local Government Audit Reports

Resourcing challenges prevented us from delivering the full plan.3. Partially

achieved.

Good Practice

Reports completed

as set out in our

Forward Work

Programme.4. Good Practice

Reports are

considered

relevant by our

stakeholders.4. In our recent survey of audited bodies, 98 per cent of respondents agreed

or strongly agreed that “NIAO Good Practice Guides are a useful resource”.4. Fully

achieved.

Annual Report and Accounts 2024 - 25 Annual Report and Accounts 2024 - 25

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20Performance Report Performance Report

Priority ActivityAnticipated

OutcomeKPI PerformanceAchieved in

2024 - 25

Priority 2: Improve

Outcomes and

Accountability

Promote and

influence public

service reform and

improvement.Ensure our work

aligns with the

priorities of

government and

the public sector

in a proportionate

and timely manner.

Public services

are improved by

accepting, learning

from and applying

the insights,

experience and

good practice

developed by

the NIAO.5. Achieve positive

satisfaction

surveys with

Accounting

Officers, Chair

of Audit & Risk

Assurance

Committees

and MLAs.5. Our Survey of Audited Bodies returned overwhelmingly positive results.

Over 90 per cent of respondents agreed or strongly agreed that NIAO

audit staff provide a high quality and professional service and provide

effective support to their Audit and Risk Assurance Committee.

Similarly, our Survey of the Public Accounts Committee (PAC) Members was

very positive with Members indicating that they were satisfied with the quality

of NIAO correspondence, oral briefings, ability to support public inquiries

and staff approachability.5. Fully

achieved.

Promote our work,

including effective

and extensive

engagement

to support

accountability.6. Development,

implementation

and delivery of

communications,

engagement

strategies and

action plans.6. The Draft Communications Strategy and action plan was presented

to the Senior Leadership Team (SLT) in June 2025.6. Partially

achieved.

Ensure our

stakeholders

value our work.7. Positive actions

are taken by

audited bodies

as a result of

the NIAO’s

recommendations.7. Agreement reached with the Head of the Civil Service and Permanent

Secretaries to provide a response to individual recommendations in the

NIAO reports to enable both the NIAO and respective Audit and Risk

Assurance Committees (ARACs) to monitor progress.

Ongoing positive engagement with the PAC in highlighting governance

arrangements and accountability processes arising from the NIAO’s

reports and subsequent PAC investigations.

Recommendations in our reports to those charged with governance

are tracked by ARACs.

Also see response to KPI 5 above.7. Fully

achieved.

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22Performance Report Performance Report

Priority ActivityAnticipated

OutcomeKPI PerformanceAchieved in

2024 - 25

Priority 3: Invest

in our People and

Resources

Be a high-

performing

people-focused

organisationTo develop the

capacity and

capability of our

highly skilled,

motivated and

versatile workforce.

The NIAO is a

high-performing

organisation

committed to

continuously

improving our

people, resources

and technology to

tackle emerging

challenges.8. Implementation

of People Strategy

and the associated

annual action

plans.8. People Strategy 2024-29 launched in March 2024 and work

is ongoing against the associated annual action plans.8. Partially

achieved.

Embed an open,

diverse and

inclusive culture

which recognises

success.9. Achievement

of Silver Award

in Investors in

People.9. Accreditation review conducted with standard accreditation achieved

and retained. We are working towards achieving a Silver Accreditation.9. Not

achieved.

Use our financial

resources

effectively,

efficiently and

sustainably.10. Manage our

finances within

2% of Total

Allocated

Budget.10. We delivered within Allocated Gross Budget with an associated

surplus of 2.3%.10. Not

achieved.

11. Be on target to

reduce emissions

by 48% by 2030

in line with the NI

Climate Bill 2022.11. The NIAO has reduced its carbon emissions, since the 2018-19 baseline

year, by 26% and is on target to meet the 48% reduction.11. Fully

achieved.

Annual Report and Accounts 2024 - 25 Annual Report and Accounts 2024 - 25

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ContentsPerformance Report

What this section refers to:

• Comptroller Function

• Our Financial audit and Public Reporting work

• How we maintain quality

• Governance, fraud prevention and detection

• Support to the Northern Ireland Assembly

• Engaging with stakeholders

• Office Collaborations

• Impacts of our ReportsThis section of the report provides an overview

of how we support and promote high standards

in public administration and financial management

and our engagement with key stakeholders.High quality public audit

and improving outcomes

and accountability

Annual Report and Accounts 2024 - 25

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Performance Report

Comptroller Function

In her role as Comptroller, the C&AG is responsible for authorising the issue of public funds from the

Northern Ireland Consolidated Fund to enable Northern Ireland departments to meet their necessary

expenditure, and for ensuring that there are adequate arrangements for the collection of revenue.

The Comptroller function is particularly important as it provides independent assurance to the

Assembly that spending by government departments is lawful and within the scope, amount and

period of the appropriation or other authority, and it also supports the important constitutional

principle that the Executive cannot spend, borrow, or impose a tax without the Assembly’s approval.

The statutory position of the C&AG, as set out in legislation, is explained in more detail in the

Governance Statement.

Financial audit

Financial audit work undertaken by the Office comprises the audit of central and local

government accounts:

Total Accounts 2024-25 2023-24

Total Accounts audited 124 126

Total Accounts qualified 15 13

Central Government Accounts 2024-25 2023-24

Accounts audited 109 111

Of which qualified 15 13

Local Government Accounts 2024-25 2023-24

Accounts audited 15 15

Of which qualified 0 0

Annual Report and Accounts 2024 - 25

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ContentsPerformance Report

Central Government

The C&AG has a statutory responsibility to audit the financial statements of all Northern Ireland

departments, executive agencies and other central government bodies, including non-departmental

public bodies, health and social care bodies and some public sector companies, and to report the

results to the NI Assembly.

The purpose of our financial audit is to provide independent assurance that the accounts

of an audited body give a true and fair view of its financial position and have been prepared

in accordance with the relevant accounting and legislative requirements.

For the audit of central government bodies, there is an explicit requirement for the auditor to

provide an additional audit opinion on whether, in all material respects, expenditure and income

have been applied for the purposes intended by the NI Assembly and conform to the authorities

which govern them; a regularity opinion.

In 2024-25, 124 central and local government accounts

(2023:24 126) were certified. In the reporting period 30

prior year accounts were also certified.

If, at the end of an audit, we consider that the accounts do not present a true and fair view,

or that expenditure and income has not been incurred in line with the NI Assembly’s intentions,

nor conforms to the authorities which govern them, then the C&AG will qualify her opinion on the

accounts. 15 central government accounts were qualified in 2024-25 (2023-24:13), including one

account where C&AG disclaimed both of her opinions. A disclaimed audit opinion on the financial

statements of a government department is an extremely unusual occurrence and a matter of

significant concern. It means that the C&AG has been unable to form her opinion on the financial

statements and arose as the audit team were unable to obtain sufficient, relevant and reliable audit

evidence to support the information in the financial statements. In such cases, and in other cases

where there are significant issues arising, we report our findings to the NI Assembly which may then

be considered by the Public Accounts Committee (PAC).

We inform the organisations we audit of the issues we find during our work in the Report to those

charged with Governance. This Report sets out audit findings and our independent view on areas

where the audited body could improve its governance, controls and financial management.

We liaise with management to agree their response in addressing any issues identified.

During 2024-25, we continued to work with the Office of the Comptroller and Auditor General

in Dublin on the shared audit and certification of the six North-South bodies. We also continue

to have close working arrangements with the National Audit Office for the accounts we audit

on its behalf. This includes audits of European Agricultural Funds, National Lottery Funding

and Whole of Government Accounts.

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Local Government

A senior member of the NIAO’s staff is designated by the Department for Communities,

with the consent of the C&AG, as the Local Government Auditor (LGA). Colette Kane,

an NIAO Director, undertakes this function. The LGA, assisted by the NIAO’s staff,

is responsible for the audit of local government bodies.

In 2024-25 we completed the audits of 15 local government accounts

(2023-24:15). No local government accounts were qualified in either

2024-25 or 2023-24.

Public Reporting

We launched our Public Reporting Programme 2024-29 in April 2024. This reflects a flexible

approach in our endeavours to remain agile and respond to new and emerging challenges

in the public sector. During the process of assessing topics and engaging with stakeholders

we have identified the following themes which underpin the Programme:

• Improving Public Services;

• Digital and Skills;

• Climate and Sustainability;

• Governance and Accountability;

• Economy, Efficiency and Effectiveness.

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Improving

Public Services

Digital

and SkillsEffectiveness

EfficiencyClimate and

SustainabilityEconomy

Governance &

AccountabilityOur work in public reporting ranges from traditional value for money studies to shorter,

fact-based reports and follow-up reports which assess the progress made on key issues

from earlier reports. The 2024-25 Programme included work in the local government area

and addressed important cross-cutting issues that lie beyond the boundaries of any

single government department.

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Public Reports

During 2024-25 a total of 26 reports were produced and nine departmental guides

were published to assist members of Statutory Committees and other stakeholders

in understanding the remit of the individual central government departments.

Good Practice Guides

We continue to produce good practice guides highlighting and encouraging public bodies to improve

their performance in achieving value for money and implementing policy and suggesting ways in which

public services could be improved. During 2024-25, we produced a good practice guide on Effective

Audit and Risk Assurance Committees.

The following Auditee comments on our Good Practice guides highlight their value to the public sector:Full copies of these reports can be obtained from our website.12 Public

Reports

9 Departmental

Guides1 Good

Practice Guide

1 Other Report

(NFI)11 Local Government

Improvement Reports

1 Local Government

Report

Feedback From Auditees:

“The most recent guide is excellent. Directly relevant and readily accessible.”

“The guides are always very useful and we would reference them in

a number of areas.”

“NIAO practice guides help inform the work of our Executive Leadership

team and are useful benchmarks.”

“These guides are an extremely helpful and practical resource.”

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Local Government Reports

Under the Local Government Act (Northern Ireland) 2014, the Local Government Auditor has a

statutory duty to publish a Local Government Annual Improvement Report on each of the 11 councils.

The purpose of these reports is to identify if councils have discharged their duties in relation to

improvement planning and if they are likely to comply with the requirement to make arrangements

to secure continuous improvement in the exercise of their respective duties. The Local Government

Auditor’s Report for 2024 was also published during the year and is available on our website.

How we maintain quality

The NIAO is committed to delivering high quality audits and we seek continuous improvement

in the work that we do. We design and implement our quality arrangements to ensure compliance

with auditing standards.

In line with the requirements of the International Standard of Quality Management (ISQM 1),

ultimate responsibility for the Office’s system of quality management rests with the C&AG.

The Chief Operating Officer (COO), in his capacity as Quality Management Director (QMD),

has operational responsibility for the system of quality management, including the monitoring

and remediation process and compliance with the Financial Reporting Council’s Ethical Standard.

In his role as Ethics and Compliance partner, the QMD also has operational responsibility

for compliance with independence requirements. All staff in the NIAO have a responsibility

to deliver quality audit work.

The Senior Leadership Team (SLT) has established quality objectives, identified risks to the

achievement of these quality objectives and implemented responses to address each across

all work streams.

We have a number of established quality assurance and monitoring arrangements to ensure:

• Audit quality is embedded, safeguarded and promoted in all work we undertake.

• We comply with the requirements of auditing, ethical and quality management standards.

• We undertake an annual quality review process to ensure that our audits have complied

with our audit methodology and professional auditing standards.

During the reporting period, five accounts were subject to independent external review by

the Institute of Chartered Accountants in England and Wales (ICAEW). This is the fifth year

ICAEW have reviewed our audits. Gradings and recommendations are included within the

NIAO Quality Report which we are required to prepare under ISQM 1.

In addition, “critical friend reviews” were carried out by directors on other teams’ audits

along with cold reviews completed by NIAO’s technical team. Themes from findings,

accompanied with updated training on our audit approach, were provided to all staff,

which included director-led workshops for teams.

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The NIAO’s technical team continues to oversee how we ensure quality requirements for our audits

are met and has established a number of monitoring and remedial arrangements to facilitate this.

These include the adoption of Root Cause Analysis (RCA) to identify the underlying key causes behind

any identified quality deficiencies. We subsequently design and implement appropriate remedial

actions to address each issue to reduce the likelihood of reoccurrence. The technical team oversees

these RCA discussions with audit teams and ensures any remedial actions are implemented in the

required time frame. Following the RCA process the findings of the quality reviews are communicated

to all financial audit staff and a feedback session is held to offer an opportunity for staff to ask

questions to clarify their understanding of issues raised.

We have an overarching ‘Quality Manual’ which includes our policies and procedures on quality.

This includes an External Quality Review policy and Root Cause Analysis policy in line with ISQM 1 & 2.

Where relevant and practical to do so, we also apply ISQM1 to our public reporting work.

We subject our public reports to peer review by other audit institutions.

Governance, fraud prevention and detection

The NIAO promotes good practice in governance arrangements and helps to combat fraud.

NIAO’s staff attend the Audit, Risk and Assurance Committees of bodies we audit, providing

support, advice and guidance to both non-executives and senior staff. The Office also provides

training through assisting in programmes developed by the Chief Executives’ Forum.

The NIAO continues to support public sector bodies as they maintain their fight against fraud.

Ongoing budgetary pressures and the cost of living crisis has increased the risk of fraud. Public bodies

must continue to use all means at their disposal to prevent and detect misuse of public funds.

The Office maintains a small counter fraud unit which provides support, advice and guidance

on fraud related matters to public sector organisations. We have published a number of fraud

risk guides in recent years, all of which are available on our website.

A key focus continues to be the prevention and detection of fraud and error through data matching. Data

matching involves comparing pieces of data or information held by one organisation against other records

held by the same or another organisation, in order to highlight potentially fraudulent claims and payments.

Since 2008 we have participated in the National Fraud Initiative (NFI), a UK-wide data matching

initiative to combat fraud and error, which runs every two years. The findings from the eighth

exercise in Northern Ireland were published in October 2024.

National Fraud Initiative

In Northern Ireland, the eight NFI exercises to date have

identified over £48 million of fraud and error

The C&AG’s reports on the NFI exercises are available via the NFI page on our website.

We encourage public sector bodies to make the NFI a key part of their counter fraud strategies.

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Support to the Northern Ireland Assembly

The C&AG provides the Assembly with independent support to enable it to hold the Executive

to account for its financial management and the value for money it provides to the taxpayer for

the public funds it spends. Our main engagement is through the support we provide to the Public

Accounts Committee (PAC).

All of the NIAO reports are presented to the PAC for its consideration.

Following consideration of the evidence, the PAC publishes its own report and recommendations

to the Assembly. The Executive is then required to respond to these recommendations, specifying

the action the audited body intends to take. We monitor the action taken and may revisit an issue

particularly where we consider that insufficient progress has been made.

Engaging with stakeholders

Receiving, investigating and replying to correspondence is an important part of our work. It is one

of our direct contact points with our MLAs and the public and is a valuable source of information

for our audit work. Where appropriate, we may carry out further audit work.

During the year we received:

• 12 Freedom of Information requests (9 in 2023-24)

• 5 Subject Access requests (3 in 2023-24)

• 2 Environmental Information requests received under the Data Protection Act 2018 (1 in 2023-24)

• No complaints in either 2024-25 or 2023-24

Feedback From Auditees:

“The independence and views of the NIAO brings real value in adding

credibility and confidence to our financial reporting.”

“The NIAO audit is always conducted professionally and thoroughly and

provides reassurance to me as Accounting Officer. It is an essential element

of governance.”

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Raising Concerns

The Comptroller and Auditor General and the Local Government Auditor are prescribed

persons under the Public Interest Disclosure (NI) Order 1998. Part of the Office’s counter fraud

role is considering public interest concerns raised by, among others, public sector employees,

contractors and the wider public. Concerns raised are dealt with professionally and treated in

confidence, as appropriate.

In 2024-25,15 issues of concern about the use of public money

were received (2023-24: 33 issues).

MLA queries

We also pursue concerns raised with us by Members of the Legislative Assembly (MLAs).

In 2024-25, 1 case was raised, and is currently under investigation.

(2023-24: 3 cases).

Engaging through Social media

Our social media activity continues to raise our profile and build an understanding of the

NIAO’s work and impact, the opportunities we offer and the accomplishments of our staff.

There were nearly 38,000 visits to the NIAO website during the year with our publications and

media releases being downloaded over 11,600 times. Amid a changing social media landscape,

we also continue to see audiences grow on LinkedIn, with followers increasing by 43 per cent.

Our video briefings, animated report summaries, videos of staff and

office promotions (published between April 2024 and March 2025)

have been seen over 3,000 times on Youtube alone, with thousands

more views on our social media channels.

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Agreed or strongly agreed

that the NIAO audit staff

provided a high quality

and professional serviceAgreed or strongly agreed

that the NIAO good

practice guides are

a useful resourceAgreed or strongly agreed

that the NIAO’s work

leads to improvement

in public services93% 91% 98%What our stakeholders tell us

Our communication with stakeholders also continues to be two-way, drawing on their input

and feedback in order to reflect on our performance, address issues of concern, and recognise

our successes. As well as maintaining sustained dialogue and interaction, in May 2025 we issued

our latest survey to all audited bodies across central departments, local government and NDPBs.

This survey collected feedback on audited bodies’ experiences of working with the Office during

the previous twelve months. A total of 54 audited bodies responded (out of 104 bodies surveyed).

Of the responses received:

Feedback From Auditees:

“NIAO staff engaged positively throughout and worked collaboratively

to deliver against agreed timelines”

“Good working relationships have been established… over a number of years

based on mutual respect.”

“The NIAO team provided valuable assistance to resolve issues raised last year.”Comments received in relation to NIAO engagement and communication included:A survey was also issued to Members of the Assembly’s Public Accounts Committee, seeking feedback

on their experiences of working closely with the NIAO in the course of their Inquiries.

Responses from all nine PAC Members were very positive with Members expressing satisfaction with:

• the relevance and presentation of the NIAO reports and their ability to support an effective Inquiry;

• the structure, clarity and level of detail at NIAO briefings; and

• the quality of NIAO correspondence, oral briefings and staff approachability.

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Office Collaborations

The Office continues to collaborate with key stakeholders to share experiences and insight.

Chief Executives’ Forum

We work closely with the Chief Executives’ Forum (CEF), an association of chief

executive officers of the civil service and wider public sector bodies in Northern

Ireland, whose strategic purpose is ‘To support Northern Ireland’s public sector

leadership to achieve improved outcomes by building trust, understanding,

learning and collaboration across the public sector’. We also hosted a number

of governance and accountability training events during the year.

Local Government Association

We continue to work closely with the Northern Ireland Local Government Association

(NILGA), the council-led representative body for local authorities in Northern Ireland.

The Association is supported by political parties and independent members in

councils and works in partnership with other key regional bodies and stakeholders.

NILGA promotes, develops and champions local government by developing regional,

all-council approaches to key issues affecting the sector.

Insight Exchanges

During the year the NIAO invited a range of external speakers to share information

and experiences with our people in areas of interest or of relevance to our work.

During 2024-25 this included academics from both the Queen’s University of Belfast

and Ulster University, the Parliamentary Commissioner for Standards, the Deputy

Public Sector Ombudsman for Northern Ireland, the Chief Inspector of Criminal

Justice, a former Irish diplomat who was part of the Irish government delegation

in the talks that led to the Good Friday Agreement and two local MLAs who

shared their experiences as women in frontline politics.

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Impacts of our Reports

We have a responsibility to achieve value for money on the services we provide to our stakeholders.

One way in which we measure our success is by identifying impacts of our work.

Quantitative impacts can overshadow qualitative impacts and are more tangible as they identify

a financial saving; however, they only present a partial picture, as it is difficult to quantify the

improvements to public services that arise as a direct result of public audit, including the issue

of our good practice guides. We note some examples of qualitative impacts that were realised

in 2024-25 through our public reporting and financial audit work:

Water Quality in NI’s Rivers and Lakes

In our March 2024 report we recommended that the Department of Agriculture,

Environment and Rural Affairs (DAERA):

• utilise all available data sources to help focus its inspection efforts in addressing

the long-term prevalence of pollution, linked to agricultural practices; and

• formalise approaches in managing and influencing environmental stakeholders

to address all sources of diffuse pollution.

DAERA accepted these recommendations and advised that its response would

include development of a DAERA Science Platform. This subsequently became

Recommendation 33 of the Minister’s Lough Neagh Report and Action Plan (July

2024) which included an action for a Forum to be established to develop wider

stakeholder partnerships to address water quality issues.

The Minister promoted a series of community drop-in sessions during October 2024

on the multi-agency work being undertaken to address blue green algae and wider

water quality issues around the Lough Neagh shoreline. Groups represented at the

events included the Northern Ireland Environment Agency (NIEA), DAERA Marine

and Fisheries Group, Agri-Food and Bioscience’s Institute (AFBI), the Public Health

Agency, NI Water, the Food Standards Agency, and Armagh, Banbridge and Craigavon

Borough Council, as well as local non-governmental environmental organisations

such as the Rivers Trust and Lough Neagh Partnership. The Lough Neagh Stakeholder

Forum was established in December 2024 and is chaired by the DAERA Minister.

Such developments are welcome in supporting efforts for greater transparency,

monitoring and understanding of water quality, as well as cultivating better and

sustained engagement with stakeholders.

In line with our recommendations, such action will be vital to help protect water

sources from damage and achieve the required regulatory quality standards.

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Mental Health Services in Northern Ireland

Our 2023 report on Mental Health Services in Northern Ireland recommended

that the Department of Health (DoH) take action to address information gaps and

improve the quality of data collected to better inform the improvement of services.

As a result of this recommendation, and recommendations made by the

PAC following their inquiry based on our Report, the DoH made a number of

improvements to its data collection. It undertook to embed the Mental Health

Outcomes Framework within Encompass, the new digital patient record system.

In tandem, the DoH also undertook to carry out a review to consider how best the

information it intends to collect can be utilised to improve services. Finally, the DoH

is also developing a number of tools, including data visualization tools, outcomes-

based accountability reporting and regional dashboards, to help support public

access to data on mental health service activity, performance and outcomes.

Such measures represent welcome developments in efforts to enhance transparency

and accountability, and to better inform taxpayers on mental health outcomes.

Tackling the Public Health Impacts

of Smoking and Vaping

In our January 2024 report we identified challenges to enforcement activities aimed

at combatting the selling of vaping products to Under 18s. Specifically, the report

highlighted that any retailer or business can sell vaping products without having

to register, creating difficulties for local councils in enforcing compliance with

legislation. The Report recommended that, the DoH should, as a priority, explore the

merits of introducing mandatory registration for retailers selling vaping products,

similar to existing requirements for tobacco products.

Following the publication of this Report the Assembly voted to include Northern Ireland

in the United Kingdom’s new Tobacco and Vapes Bill in February 2025. One of the wide-

ranging powers this legislation will introduce is extending the current Tobacco Retailers

Register in Northern Ireland to include retailers selling vapes and other nicotine

products. This will considerably strengthen the regulatory framework around selling

these products. Failure to register may result in a £500 fixed penalty being imposed,

or prosecution involving a fine of up to £5,000. The registration requirement will also

significantly assist councils in improving their targeting of monitoring and enforcement

of legislation.

These developments are a positive step in strengthening collaboration between

central and local government to help deliver longstanding benefits to public health.

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Public Bodies’ Response to

Misrepresented Soil Analysis

In our July 2024 report we outlined failures by public bodies in adequately

investigating potential planning fraud involving over 3,000 falsified soil samples.

The Report found that a number of local councils failed to initiate a planning

fraud investigation until we raised the matter with them during our review.

Among the issues identified by our Report was confusion within the planning

system around where responsibility for initiating an investigation lay.

We recommended that all statutory bodies involved in the planning system

should play their part and fully commit to a shared and collaborative approach

going forward. We also recommended that a full review should be undertaken

of similar issues that arose in a case in 2021, when a number of poultry farming

planning applications in Northern Ireland were supported by falsified documents

purporting to come from the Republic of Ireland’s agri-food agency, Teagasc.

Since we published this report, a Task-and-Finish Group (TFG) has been established

by the Department for Infrastructure and the Society of Local Authorities and

Chief Executives (SOLACE) on behalf of the local councils. The TFG also includes

representatives from DAERA and NIEA. The objective of this Group is to ensure,

via a partnership approach, that the issues that arose in relation to misrepresentation

of soil sample analyses are addressed to prevent a recurrence of similar issues.

A review of the 2021 case is within the scope of the TFG. The Group is reviewing

lessons learned and is developing a draft protocol to clarify the roles and

responsibilities of all stakeholders in providing greater collaboration and will

identify how the planning system should respond to matters of fraud which

impact across the region.

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Some highlights of our year

Staff assembled at the 2025 NIAO Conference

Our new Trainee Accountants and

Higher Level Apprenticeships visit

Parliament Buildings at Stormont

Connie Foley shortlisted

as a finalist for Public

Sector Apprentice of

the YearAudit Manager and SistersIn

mentor Karen Costley with

mentee Katie Ferguson from

Lumen Christi CollegeNIAO audit team visits the the Assembly Chamber

during a team planning day at Parliament Buildings

Brian O’Neill, Anu Kane, the Data Analytics Team, Chris Boughton,

Beth Thompson and Rebekah Gleghorne, and Rodney Allen visiting

the Office of the Comptroller and Auditor General Ireland.

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Performance Report

Dorinnia Carville and

Broadroom Apprentice

board member

Bonnie MacRaeNIAO Assembly Liaison Officer Kyle Bingham

and C&AG Dorinnia Carville with PAC staff

The NIAO visits the staff at the Office of the

Comptroller and Auditor Genera in DublinEngaging with

potential future

NIAO employees at

annual careers fairs.

Former diplomat Tim O’Connor visits the NIAO to deliver

an Insight Exchange session on his career in politicsNIAO presentation by Patrick Barr, Johnny

Feeney and Corey Parr to Ulster University Belfast

students on the BSc Accounting (Pathways) course.

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NIAO Trainee Accountants and Higher Level Apprentice’s bowling nightC&AG Dorinnia

Carville and

LGA Colette

Kane at CIPFA

conference.

NIAO staff on a lunch walk for #MOVEweekColette Kane, Director and Local Government

Auditor at the final Northern Ireland Local

Government Association Executive meeting of 2024,

held in Antrim and Newtownabbey Borough Council.

Daniel Greenberg CB, the UK

Parliamentary Commissioner for

Standards, visits the NIAO to take

part in an Insight Exchange session

on the Nolan Principles of Public LifeStaff participate in a volunteering

opportunity with the South Belfast Food Bank

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We were honoured to welcome Dame Margaret Hodge, former UK

Public Accounts Committee Chair, to our office for an Insight Exchange

event, with representatives from the NI PAC staff also in attendance

Recognising and thanking our

long serving members of staff for

their outstanding contribution to

the work of the NIAO.

Thanking our outgoing

Chair Martin Pitt after

completing his term with

the NIAO Advisory Board.Comptroller and Auditor General

Dorinnia Carville attends the

graduation ceremony following

her participation in the Centre for

Peace Building and Democracy’s

Fellowship ProgrammeTeam NI get set for the Belfast Marathon,

raising funds for the NI Air Ambulance.

Dorinna Carville and Rodney Allen with Jacqui Durkin from the Criminal Justice

Inspection NI and Sean Martin from Northern Ireland Public Services Ombudsman

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This section of the report demonstrates how we

ensure the NIAO operates as a high performing

organisation to meet emerging challenges.Investing in our People

and Resources

What this section contains:

• Our Staff Achievements

• Sickness Absence

• Investment in People

• Employee Engagement and Wellbeing

• Engaging with the Community

• Equity, Diversity and Inclusion

• Staff Turnover

• Real Living Wage

• Dying to Work

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Our Staff Achievements

The Office continues to support staff in providing them with the training and opportunities

to develop and broaden their experience.

Some achievements are set out below:

Coist Bradford and Lewis Kennedy

The Common Purpose Northern Ireland Legacy

Leadership Programme

The Common Purpose Northern Ireland Legacy Leadership

Programme is designed to bring together leaders from diverse

backgrounds to tackle complex societal issues and create lasting

positive change in Northern Ireland. Through a series of workshops,

discussions, and collaborative projects, participants explore leadership

strategies, enhance their understanding of the region’s unique

challenges, and develop innovative solutions. Reflecting on

his experience Coist commented that he has gained a deeper

understanding of inclusive leadership, conflict resolution, and

community engagement. Furthermore he has developed practical

skills in strategic thinking, communication, and collaboration,

enabling him to drive meaningful change in his own sphere

of influence and beyond.

Connie Foley

Public Sector Apprentice of the Year Candidate

Connie, a second year Higher-Level Apprentice was shortlisted

in this category of the NI Apprenticeship Awards this year.

Connie spoke positively about her experience commenting that “being a

finalist for the apprenticeship awards 2025 in the public sector category

was a great experience and honour. This opportunity enabled me to

advocate for apprenticeships and network with other apprentices. It pushed

me outside my comfort zone but in turn has given me more confidence

and self-belief. I feel honoured to be shortlisted and it wouldn’t have been

possible without the skills, support, and experiences that I have gained from

my time so far in the Office. The awards ceremony was a very positive and

uplifting day and it was very nice to cheer everyone on. The nomination

allowed me to recognise all the hard work I have put into my

apprenticeship journey.”

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Sarah Davidson

CIPFA Accredited Counter Fraud Technician

(ACFTech)

During the year Sarah undertook this qualification, which is accredited

by the Counter Fraud Professional Awards Body. It was achieved through

a combination of self-study, attending a five-day intensive online course,

and completion of an exam and assignment. Reflecting on her achievement,

Sarah commented, “Fraud, especially cyber fraud, is very topical now and

completing this course has allowed me to gain knowledge of fraud awareness

and the impact that fraud has on the UK. It was interesting to learn alongside

others who work within the public sector and hear their experiences to date

and put my own learning into practice within the Counter Fraud Unit at NIAO.”

Donna Anderson

Certificate in Diversity and Inclusion in the Workplace

The course consisted of 8 modules followed by an on-line assessment and

submission of a 1,000 word essay. Donna noted that “this certificate provided

me with a better understanding of the opportunities that are available for

greater inclusivity in the current working environment. I am a member of

NIAO’s Equity, Diversity and Inclusion Committee and what I have learnt

will be of great benefit.”

Karen Costley

SistersIN Leadership Programme

The SistersIN Leadership Programme is an 8-month development

journey for sixth form girls to help build their confidence and broaden

their career perspectives. This is achieved through three main methods:

offering participants leadership development training; experience of

project leadership; and via mentorship from female business leaders.

Karen supported a mentee during 2024-25, working with a sixth form

student from Lumen Christi College.

Reflecting on the experience, Karen noted “It was really fulfilling

as a mentor to be able to help a young student grow in confidence,

particularly with public speaking. I also enjoyed the opportunity to

help spread information on the work that we do, which hopefully will

help attract more people to join us as trainees or apprentices.”

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Curtis Fleming & Beth Lyttle

Young Scotland and Northern Ireland Programme

This is a 4-day residential annual event held in January and run jointly

with the Young Ireland Programme. The event brings together delegates,

early in their public sector careers, to develop their communication skills

and build confidence through discussion and dialogue, the personal

testimonies of inspiring speakers, and the delegates’ own presentations

on questions of ‘current interest or controversy’.

Speaking about her experience in representing the Office, Beth

commented “I enjoyed the programme especially meeting new people

working in the public sector across Scotland, NI and Ireland. I found the

public speaking challenges difficult but after completing them I think

my confidence in this area has greatly improved.”

Curtis also found the experience to have been very positive commenting

“Having the chance to explore different public speaking styles, from

structured speeches to spontaneous responses and interviews, really

pushed me out of my comfort zone. Repeating this in front of a large

audience over a few days helped me grow more confident in this

environment.”

During the year there was further exam and professional development success for our

Trainee Accountants and Higher-Level Apprentices. Michael McNally, Jude Kells, Nikita White,

Beth Lyttle and Caitlin Graham were admitted to membership of Chartered Accountants

Ireland and are all promoted and working as Auditors in the office.

Trainee Accountants Alex Kerr, Fiona Cullen and Kyle Jeavons passed their Chartered

Accountant Proficiency 2 (CAP2) exams. Siubhan Ni Chiarain, Ben Johnston, Daniel Bowden

and Johnny Feeney passed their Chartered Accountant Proficiency 1 (CAP1) exams.

Conor Sackesen and Eva Donaghy successfully completed their Higher-Level Apprenticeship

(HLA), qualifying as Account Technicians and have both progressed to the Trainee Accountant

programme entering at CAP2 level.

Connie Foley successfully completed year 1 of her HLA and is currently completing Year 2.

Connie has been successful in securing a conditional Trainee Accountant place with the

office beginning in September 2025.

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Sickness Absence

The NIAO successfully achieved its target of six days’ average sickness absence per employee

for 2024-25, showing a further reduction from levels in the preceding three years as follows:

Overall sickness absence was 5.49 days lost per employee in 2024-25, a reduction on the previous

year’s 5.70 days.

Sixty-one per cent of these absences resulted from the long-term sickness of a small number

of staff with 56 per cent of staff having no sickness absences in 2024-25.

We have a comprehensive attendance management policy, providing advice and guidance to line

managers and employees on matters relating to sickness absence. The policy details the procedures

to be followed with regards to reporting and monitoring attendance. Sickness absence is well

managed with return to work meetings routinely carried out by line managers, following all incidents

of sickness absence. Figures are also closely monitored by the Senior Leadership Team and the

Advisory Board.

When managing employee absences we will always act reasonably and fairly, taking account of

individual circumstances and seek the advice of our Occupational Health Services where appropriate.Average days lost to sickness absence per employee has been below the

6 day target over the /l.altast two years

10

Days Lost8

6

4

2Target

2022-23 2023-24 2024-25

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Investment in People

Our People Strategy and Learning Development and Talent Management Strategy for the

period 2024-29 are intrinsic to the delivery of our Corporate Plan’s strategic priorities.

As an Investors in People (IiP) accredited organisation we are committed to the continuous

investment in our staff development, talent and motivation. Our people are viewed as our

most valuable resource: their attraction, development and retention is critical to meeting our

strategic priorities and it is essential that strong people leadership supports their achievement.

The IiP Standard is a business improvement tool designed to advance an organisation’s performance

through its employees. It helps organisations to improve performance and realise objectives through

the management and development of their people. We have held Standard Investors in People

accreditation since April 2021. The IiP consultant conducts periodic progress reviews throughout the

three-year accreditation period, and these are shared with all staff to promote transparency of the

process. The Office was notified in May 2024 that Standard Accreditation has been retained. That

process highlighted many positive indicators and a number of areas for development to support

action planning for continuous improvement.

Employee engagement and wellbeing

We provide access to a range of resources, such as on-site gym and wellness facilities, Mental Health

First Aiders, access to an online Health and Wellbeing portal and an Employee Assistance Programme

that includes provision for family members.

During the reporting period, we continued to deliver a Wellbeing Strategy through an action plan,

supported by our Wellbeing Committee, with a focus on physical, mental, financial and social

wellbeing. The Wellbeing Committee and the Sports and Social club collaborated to develop a

calendar of activities including walks, lunchtime pool competitions, bowling, golf, yoga, a sleep

awareness session, nutrition workshop, blood donation sessions, gardening club, all of which were

well-supported during the year. In addition flu vaccines and health checks were provided for staff.

Engaging with the Community

Two teams took part in the Belfast Marathon relay event in May 2024. Our annual Macmillan

Coffee morning was held in September 2024 followed by a day of building relationships with

our colleagues in the Office of the Comptroller and Auditor General in Dublin. In December

2024 two teams volunteered at our local South Belfast Foodbank sorting and dating 5 tonnes

of food with our staff providing a food donation that was the equivalent of 147 meals.

Many of our staff use their own time and resources to undertake courses of study or

contribute positively to their communities in a voluntary capacity. We are very proud

of all our staff and appreciate their commitment to the wider community.

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Equity, Diversity and Inclusion

We are fully committed to the effective promotion of equality of opportunity in all our employment

policies and procedures. We adopt a fair and consistent approach to recruitment and appointments

are made on merit. Equity and Diversity training is mandatory for all employees, so that everyone

is aware of their responsibility in creating a harmonious working environment for all. All staff are

encouraged to develop to their full potential and we are committed to developing talent within

the organisation on a fair and impartial basis.

We appreciate the benefits of a diverse workforce, creating a more inclusive culture and accessing

a broader range of perspectives, skills and talent. This year we participated in various initiatives

such as SistersIN.

The Equity, Diversity, and Inclusion (EDI) Committee has been making significant strides in

promoting a more inclusive environment. With a steadily growing membership, it is committed

to ensuring that diverse voices are not only heard but actively engaged in shaping the culture

of the NIAO. This commitment is demonstrated through the work being done to obtain Diversity

Mark Accreditation. As part of the accreditation, the incoming year will be pivotal with an EDI

Strategy being developed and rolled out across the organisation for the first time.

In addition to this Accreditation, the EDI Committee has also taken important steps to address

the needs of staff. The rollout of a “period-friendly workplace” initiative led to sanitary packs being

placed in female and unisex toilets throughout the Office. This initiative not only demonstrates

our commitment to staff wellbeing but also fosters a culture of openness around topics that

have historically been stigmatised. Through these efforts, the EDI Committee aims to provide a

workplace that values and respects the diverse identities and experiences of all members of staff.

Staff Turnover

The staff turnover percentage, defined as the number of leavers divided by the average staff in post,

was 5.6 per cent for the year ended 31 March 2025 compared to 8 per cent for the previous year.

During 2024-25 we carried out a number of engagements with local universities and Further

Education colleges, and we are working with many of our stakeholders to continue to recruit

and retain high quality staff at the NIAO.

Real Living Wage

We became an accredited Real Living Wage employer in April 2020 and we are currently one of

over one hundred Real Living Wage accredited employers in Northern Ireland. Those employees

most impacted are our Higher-Level Apprentices who achieve maximum benefit as they fall

primarily into the under 23 age brackets. As an accredited employer we are committed to paying

a wage independently calculated based on the cost of living ensuring that workers receive a

fair wage that meets their everyday needs and we believe that this will help in our ambition

to become an employer of choice.

Dying to Work

We have agreed a charter that sets out how our employees will be supported, protected and

guided throughout their employment, following a terminal diagnosis.

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Performance Report

Resource Accounts

2024 - 25

Article 6 (3) of the Audit (Northern Ireland) Order 1987, as amended requires the NIAO to

prepare resource accounts of the kind mentioned in Section 9 of the Government Resources and

Accounts Act (Northern Ireland) 2001. Details of the Order can be found at www.legislation.gov.uk.

The financial statements on pages 104 to 107 have been prepared on a resource basis in accordance

with the 2024-25 Government Financial Reporting Manual (FReM) issued by the Department of

Finance (DoF).

NIAO Estimate and Budget Process

The Audit (Northern Ireland) Order 1987 requires the C&AG to prepare a Supply Estimate each

financial year. The Northern Ireland Assembly Audit Committee (NIA AC) examines the NIAO’s

budget proposals, agrees the annual Supply Estimate with the C&AG, and lays the Supply Estimate

before the Assembly for approval.

The Budget Act (Northern Ireland) Order 2025, which received Royal Assent on 6 March 2025,

together with the Northern Ireland Spring Supplementary Estimates 2024-25 which were agreed

by the Assembly on the 17 February 2025, provide the statutory authority for the Executive’s final

2024-25 expenditure plans. The Budget Act (Northern Ireland) 2025 also provides a Vote on Account

to authorise expenditure by departments and other bodies into the early months of the 2025-26

financial year.

Budget structure

Total Managed

Expenditure (TME)

Resource DEL

Non-ringfenced

Resource DELRingfenced

Resource DELCapital DELAME DEL

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The total amount the NIAO spends is referred to as the Total Managed Expenditure (TME),

which is split into:

• Annually Managed Expenditure (AME)

• Departmental Expenditure Limit (DEL).

HM Treasury, and in turn DoF, do not set firm AME budgets. They are volatile or demand-led

in a way that bodies cannot control. The NIAO does not have any AME expenditure.

As DEL budgets are controllable, Treasury sets firm limits for DEL budgets for Whitehall

departments and Devolved Administrations at each Spending Review. DEL budgets are

classified into resource and capital:

• Resource budgets are further split into non-ringfenced resource that pays for programme

delivery and running costs, and separately ringfenced resource that covers non-cash charges

for depreciation and impairment of assets.

• Capital DEL includes spending on the purchase and /or acquisition of assets.

Further detail on the Budgeting Framework can be found in the Consolidated Budgeting

Guidance published by Treasury. Consolidated budgeting guidance 2024 to 2025 - GOV.UK

Budgetary Performance

Details of the NIAO’s 2024-25 performance against Budgetary Control totals is set out in the table below.

Explanation of Variances

Our underspend in Resource DEL this year is primarily due to delays and challenges in the filling

of vacant posts.

We did not spend any of the capital allocated this year as estimated planned works were not

completed by the year end. Final Plan

2024-25

£000Provisional

Outturn

2024-25

£000Underspend /

(Overspend)

2024-25

£000

Resource DEL 9,613 9,337 276

Non-ringfenced 9,388 9,156 232

Ringfenced 225 181 44

Capital DEL 30 0 30

Total DEL = TME 9,643 9,337

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Performance Report

Resources

The Northern Ireland Assembly Audit Committee authorises separate resource,

capital and cash budgets, which form totals within which the NIAO must manage.

Overall financial performance against the budget is set out in the following table:

These figures exclude non-voted expenditure items, such as the Comptroller and Auditor

General’s salary costs, paid directly by the Assembly and outside the control of the NIAO.

This table ties directly to the Statement of Outturn against Assembly Supply (SOAS) as

a key accountability statement which is audited.Estimate

£’000Outturn

£’000Saving /

(Excess)

£’000Saving /

(Excess) %

Total spend on audit

and assurance work12,450 12,208 242 1.9

Less: income (3,103) (3,137) 34 1

Net spend 9,347 9,071 276 2.9

Capital expenditure 30 0 30 100

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The figures below show that the main area of expenditure continues to be staff costs at

71 per cent of expenditure (2023-24: 70 per cent), with 70 per cent of the NIAO’s resources

(2023-24: 65 per cent approximately) being focused on financial audit.

Included in the above, the cost of administering the Comptroller Function was £20,000,

as shown at Note 2 to the Financial Statements.

Income includes fees received from:

• some central government bodies and North-South bodies in respect of the audit of their accounts;

• the National Audit Office, for audits we carry out on its behalf; and

• local government bodies, for the audit of their accounts and performance improvement.

Each element of income, and the direct costs associated with it, is shown in Other Assembly

Accountability Disclosures (Audited) at page 97.Staff Costs General Office

ExpensesContracted

out costsNon-cash

costsKey areas of expenditure

71% 15% 13% 1%

Financial

AuditPublic

ReportingGovernance

and

anti-FraudSupport to NI

Assembly and

other Public

Bodies and

CitizensHow we used our resources

70% 4% 23% 3%

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Performance Report

Summary budget to accounts reconciliation

The Government Financial Reporting Manual requires a table showing a reconciliation between

the budgets and accounts:

2024-25

£’0002023-24

£’000

Resource Budget Outturn of which

Departmental Expenditure Limits (DEL) – Voted 9,071 8,252

Departmental Expenditure Limits (DEL) – Non-Voted 266 257

Annually Managed Expenditure (AME) - -

Total 9,337 8,509

Net Operating Cost 9,337 8,509Resources required in the future

During October and November 2024, the C&AG and NIAO officials gave evidence to the

NI Assembly Audit Committee (NIA AC) in respect of the budget proposed for 2025-26.

The NIA AC agreed that the Executive’s Budget document should make provision for the

bid submitted and the NI Executive agreed the 2025-26 allocation of a Resource DEL

budget of £11.2 million and a Capital DEL budget of £40,000 for the NIAO.

Payment of Suppliers

We are committed to the prompt payment of bills for goods and services received, in accordance

with the Better Payment Practice Code. Unless otherwise stated in the contract, payment is due

within 30 days after delivery of the invoice or the goods and services, whichever is later.

For 2024-25, we paid 98 per cent of bills (2023-24: 97.6 per cent)

within 30 days following delivery of the invoice.

In addition to this, the government has said that, wherever possible, public sector bodies should

seek to pay suppliers within 10 working days of receipt of the invoice. For 2024-25 we met this

standard for 94.4 per cent of invoices received (2023-24: 92.7 per cent).

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ContentsPerformance Report

Sustainability, environmental, social and

community matters

The Climate Change Act (Northern Ireland) 2022 (the Act) sets a clear statutory target of net zero

emissions by 2050. This legislation places a statutory duty on all government departments to

exercise their functions in a manner that is consistent with achieving that target as far as possible.

Our sustainability reporting is based on the Task Force on Climate-Related Financial Disclosures

(TCFD) framework.

Governance within the NIAO

The NIAO established two teams to address the issue of sustainability:

• the Internal Climate Change Programme Team (ICCPT) which focuses on what the Office can do; and

• the External Climate Change Programme Team (ECCPT) which focuses on the position in the wider

public sector.

Both teams report to the Senior Leadership Team (SLT) and the Advisory Board, providing updates

on sustainability issues.

Advisory Board

Internal Climate Change

Programme TeamExternal Climate Change

Programme TeamSenior Leadership TeamThe current governance structure is summarised below:

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Performance Report

Emissions

We have adopted the Green House Gas Protocols 2001 (GHG) and the

associated GHG reporting and use the UK Government Conversion Factors1

for greenhouse gas (GHG) reporting as they are relevant to emissions

reporting. We report on:

• Scope 1 (direct) emissions, which are those we make directly, for example,

through the burning of natural gas for heating;

• Scope 2 (energy indirect) emissions, released into the atmosphere in line

with our consumption of purchased electricity;

• Scope 3 (other indirect) emissions such as water usage, business travel,

commuting and working from home.

Our baseline year for emissions is 2018-19, as it was the first year that

complete data was available, and the last complete year, free from the

COVID-19 pandemic disruption and the new hybrid way of working.

NIAO annual emissions (Total Tonnes CO2e per year)

by scope and targets

0.00100.00200.00300.00400.00500.00600.00700.00

2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25NIAO Emissions and 2030 Target

Scope 1 Scope 2 Scope 3 Est Scope 3 Target Emissions

1 ghg-conversion-factors-2024-condensed set for_most_users_v1_1.xlsx

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Analysis

Scope2024-25

Nearest

Tonnes

Co2e2023-24

Nearest

Tonnes

Co2e Analysis

1 9 13This is driven purely by gas consumption which

was lower this year.

2 49 117Electric consumption is the only emission

that meets the definition of Scope 2. We have

consumed more electricity this year, however

the emissions’ factor has reduced as our electricity

consumption is now sourced from fully renewable

energy. Previously, we had reported waste

generation and water usage under this scope

which is now reported under Scope 3.

3 184 107Emissions have risen due to an increase in

business travel and associated increase in

accommodation costs for staff.

Estimated

Scope 341 60We have estimated this based on the number of

audits we contract out. It assumes that the firms, to

whom we contract audits, have achieved the same

emissions’ efficiency as we have. We recognise that

more reliable data is required in this area.

TrajectoryTarget met

in 2024-25Target met

in 2023-24The Climate Act 2022 target is a 48% reduction

against baseline by 2030. In 2024-25 we achieved

a 49% reduction.

We have not used any offsetting services to lower our emissions’ figures.

Managing Risks

NIAO’s Corporate Risk Register Working Group considers the latest in sustainability

and environmental risks in its annual horizon scanning exercise and reports these to

the ICCPT and ECCPT.

We have reviewed various scenarios on the Department for Infrastructure’s flood maps’

viewer and considered them as part of our office’s business continuity plan to ensure

operations can continue without access to the office.

A potential risk to our work is the impact of climate change on our auditees,

as assets may become more difficult to value and verify.

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Performance Report

Actions

We recognise the impact and importance of our assurance role in public sector sustainability

reporting and there is an opportunity to reduce emissions on a public sector scale based on our

reporting and recommendations. Audit teams now consider climate change related risks as part

of our work. During the year three of our staff have undertaken additional training on sustainability

reporting with Chartered Accountants Ireland.

Members of staff attended several environmental, renewable energy and sustainability conferences

in year, to identify emerging issues in sustainability.

We have also continued the successful scheme Fill by Floor Fridays in which our building is filled

from the first floor up to reduce the energy used on heating and lighting for one day a week.

Staff also continue to look after the many plants and shrubs in the car park throughout the year.

Action plan metrics and KPIs

Following on from the creation of the ICCPT action plan in 2023, we are continuing to make

satisfactory progress in implementing the 18 identified tasks, with many of them embedded

as part of our everyday operations and monitoring.

We consider the most informative metric we can apply is the reduction in our emissions,

while still delivering our full portfolio of work.

We remain committed to following the Act’s target of Net Zero by 2050. Maintaining the 2030

target of a 48% reduction will be the focus of our efforts in the coming years.

We are mindful of the International Sustainability Standards Board’s development and publication

of sustainability standards S1 and S2 and will seek to incorporate any additional requirements in

our reporting in the coming years.

We do not yet have a full suite of qualitative and quantitative metrics to observe long term trends

but have provided an update on the key targets in 2023-24.

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ContentsPerformance Report

TargetMet in

year Comment

Being on target to

reduce emissions by

48% by 2030 in line

with legislationAchievedWe have reduced our carbon emissions, since the

2018-19 baseline year, by 49%. Emissions have

decreased by 18% in 2024-25 from 2023-24

(2024-25 target:26% reduction).

Reducing electricity

consumption Not

AchievedThere has been a 27% increase in electricity

consumption since 2023-24, however consumption

is now sourced from fully renewable energy.

Reducing gas

consumptionAchieved Gas usage has decreased by 41% since 2023-24.

Reducing water

consumptionAchievedOur water consumption has decreased by 18% since

2023-24.

Increasing species on

office groundsn/aNo official data to support or compare but anecdotally

more species of pollinators have been observed in

year and plant species and variety remains higher than

before the garden car park was established. In 2024-25,

we held our Annual Big Dig event, where staff planted

flowers and plants in our car park.

Dorinnia Carville

Comptroller and Auditor

General for Northern Ireland

30 June 2025

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Accountability

ReportAccountability Report

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Corporate Governance Report

The section explains the NIAO’s governance structures and how they support the achievement

of our objectives.

Directors’ Report

The directors of the NIAO comprise the senior managers and the non-executive Board members,

whose details are set out below.

NIAO Senior Leadership Team

The Senior Leadership Team (SLT) is responsible for the strategic and operational leadership

of the NIAO. Subject to the C&AG’s statutory position as Corporation Sole and her primacy

in setting strategy, policy and procedures, SLT is the principal mechanism for the direction

and delivery of the business and for decision-making in the NIAO. Minutes are taken for the

monthly SLT meetings which are chaired by either the C&AG or the Chief Operating Officer.

Its membership over the reporting period was as follows:

Dorinnia Carville Comptroller and Auditor General

Rodney Allen Chief Operating Officer

Patrick Barr Director

Suzanne Jones Director

Colette Kane Director

Brian O’Neill Director

Seamus Wade Director

Tomas Wilkinson Director

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Accountability Report

C&AG’s Advisory Board

The Advisory Board is responsible for providing objective and impartial advice to the C&AG

to assist her in the discharge of her functions and works in partnership with the C&AG and

the SLT. It supports the C&AG in this role by reviewing the comprehensiveness and reliability

of assurances on governance, risk management, the control environment, and the integrity

of financial statements and the annual report.

The Advisory Board receives regular reports and updates from the other NIAO sub-committees,

the Audit and Risk Assurance Committee and Remuneration Committee. The Advisory Board

also scrutinises the work of the NIAO in accordance with the ‘Corporate governance in central

government departments: Code of good practice NI 2025’ issued by the Department of Finance,

with the objective of providing constructive challenge.

The Advisory Board comprises four non-executive members, the C&AG and the Chief Operating

Officer (COO). The non-executive members bring an independent and external perspective

to the work of the Board. Under current arrangements, the Chairperson of the Advisory Board

is appointed by the C&AG through open competition, based on merit. Non-executive members

are similarly engaged.

Each non-executive member is appointed for a three-year period, which may be extended

for a maximum of a further three years by the C&AG with the endorsement of the NIA AC.

In 2024-25, the Advisory Board’s membership, in addition to the C&AG was as follows:

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Marie Mallon OBE

Advisory Board Chairperson from 2 December 2024

Previously Non-Executive Director

Marie Mallon (OBE) was previously Director of HR and Deputy CEO

of Belfast Health and Social Care Trust for seven years, having held the

position of Director of HR with the Royal Hospitals Trust before that.

Marie is an associate of the HSC Leadership Centre and was previously

Chair of both the Labour Relations Agency and the Public Sector Chairs

Forum. She was also recently on the Board of the NI Transport Holding

Company (Translink) and, in 2022, she was awarded an OBE for her

services to industrial and employment relations in Northern Ireland.

Martin Pitt

Advisory Board Chairperson, until 1 December 2024

In December 2018, Martin Pitt was appointed as the Chairperson of

the Advisory Board for an initial three-year period to December 2021

and was subsequently reappointed for a further three-year period to

December 2024. He was previously a partner within PwC’s Audit and

Assurance Team and Head of Internal Audit, bringing with him over

30 years’ experience working with public and private sector bodies

across the UK. Throughout his career, he has advised organisations

on issues relating to corporate governance and risk management.

Rodney Allen

Chief Operating Officer

Rodney Allen, as Chief Operating Officer, has responsibility for

both leading and managing the NIAO’s operational business and

supporting the C&AG in the strategic leadership of the NIAO,

including stakeholder management.

Rodney has been a member of the NIAO senior team since 2008.

He is a fellow member of the Association of Chartered Certified

Accountants and is a graduate of the US Office of Personnel

Management’s Federal Executive Institute. ContentsAccountability Report

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Dean Sullivan

Non-executive Director, since 26 February 2025

Dean is a CIPFA-qualified accountant and is currently a self-employed

management consultant. His recent consultancy roles include stocktake

of the NI Regional Co-ordination Centre for unscheduled care on behalf

of the six HSC Trust Chief Executives. He has recently provided the

Southern Trust with strategic, operational and governance support.

Dean’s previous roles include Chief Strategy Officer for the Irish Health

Service Executive (2017-24) and Director of Commissioning at the NI

Health Social Care Board (2010-17).

Claire McAleenan

Non-executive Director, since 26 February 2025

Claire has been employed by Natwest as Head of Cost Planning from

2021. This organisation has over 60,000 employees and operating costs

exceeding £7 billion. Claire is a chartered accountant and recently had

oversight of the Ulster Bank Republic of Ireland exit program from 2021-24.

Claire holds a leadership role as a Regional Board Member for Ulster

Bank. This role focusses on promoting growth and brand along with

supporting a variety of charities. Claire is a former Non-executive

Director for Parenting NI from 2017- 20.

Jill McLaughlin

Non-executive Director, since 18 March 2025

Jill is a highly experienced corporate and commercial solicitor with a

career spanning over two decades. She holds a Law degree from the

University of Newcastle upon Tyne and a Diploma in Legal Practice from

the University of Northumbria, where she was awarded the Law Society

prize for Outstanding Performance. She is a qualified solicitor in both

England & Wales and Northern Ireland.

Jill has recently been appointed as a lecturer for the MSc in Management

and Corporate Governance course at Ulster University. She is passionate

about integrating her wealth of practical experience into academic

learning and equipping future leaders with essential corporate

governance expertise. Three new non-executive members were appointed to the Advisory Board during the year for a three-

year period: Accountability Report

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Fergus Devitt

Non-executive Director, resigned 27 January 2025

Fergus Devitt is Managing Director of Rockpool Insights Ltd, his own

business consultancy. Prior to that he held a number of Director level

posts in the Northern Ireland Civil Service.

He is an experienced programme and project manager, a trained Senior

Responsible Owner and an accredited High Risk GatewayTM Reviewer.

He has significant experience of governance, Board effectiveness

and senior level recruitment and is able to make connections within,

across and between organisations to strengthen those organisations,

communities and individuals.

John Turkington

Non-executive Director, until 31 March 2025

John Turkington is Principal of Turkington Chartered Accountants and

previously held senior roles in Ulster Bank as Director of Corporate

Banking, Director of Property Banking and Regional Director of

Commercial Banking. More recently, he held an all-island role as

Head of Ulster Bank’s Specialised Relationship Management division.

He is a graduate of Queen’s University, Belfast (Law and Accounting)

with a post-graduate Diploma in Accounting and is a Fellow of

Chartered Accountants Ireland.

Bonnie MacRae (term ended 30 June 2024)

Boardroom Apprentice

Bonnie MacRae joined us as a Boardroom Apprentice in our second

year as a host Board with the scheme. Bonnie currently works with

Bang & Olufsen of Belfast as Sales Manager. She manages the accounts

of many high net worth individuals, giving her the unique advantage

of coming into contact with a multitude of board members spanning

multiple sectors. She previously worked for Northern Ireland Hospice. Two non-executive members and our Boardroom Apprentice left during the year:ContentsAccountability Report

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NIAO Audit and Risk Assurance Committee

The Board appoints an Audit and Risk Assurance Committee to support its role by reviewing the

comprehensiveness of assurances on systems of internal control, risk management and corporate

governance. The Audit and Risk Assurance Committee is independent of all the NIAO’s operational

activities. It comprises three non-executive Board members, excluding the Board Chairperson

who appoints its Chairperson. The Board Chairperson attends by invitation. During 2024-25 the

membership of the Committee has been:

• John Turkington (Chairperson until 31 March 2025)

• Marie Mallon OBE (Until 2 December 2024 when she was appointed Chairperson of the Board)

• Fergus Devitt (Resigned on 27 January 2025)

• Dean Sullivan (Chairperson since 1 April 2025, in post since February 2025)

• Claire McAleenan (in post since February 2025)

• Jill McLaughlin (in post since March 2025)

• Bonnie MacRae (until 30 June 2024)

Register of interests

The SLT and Advisory Board members complete an annual declaration of interests. None of the

non-executive or executive members held company directorships or significant interests which

might conflict with their responsibilities in 2024-25. They also did not hold any other related party

interests.

Auditor of the NIAO

The Department of Finance appointed SCC Chartered Accountants as the external auditor

of the NIAO for a three-year term commencing with the audit of the 2023-24 accounts.

Details of the cost of the work done by the external auditor are disclosed in Note 3 to the

Financial Statements.

Disclosure of relevant audit information

The C&AG has taken all the steps that she ought to have taken to make herself aware of any

relevant audit information and to establish that the auditors are aware of that information.

So far as the C&AG is aware, there is no relevant information of which the auditors are

unaware. The C&AG has taken personal responsibility for the annual report and accounts

and the judgments required for ensuring they are fair, balanced and understandable.Accountability Report

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Personal data-related incidents

There were no protected personal data-related incidents which required reporting to the Information

Commissioner’s Office (ICO) during 2024-25.

Complaints

We have a complaints process in place to ensure that complaints from both clients and the public

are dealt with in a timely, open and fair way, in line with public sector good practice. The process

has two stages, the details of which can be found on Complaints Page | Northern Ireland Audit Office.

If a complainant remains dissatisfied following the outcome of these stages, they may refer the

matter to the Northern Ireland Public Services Ombudsman’s Office (NIPSO), in accordance

with the Northern Ireland Public Services Ombudsman Act (Northern Ireland) 2016.

We received no complaints during either 2024-25 or 2023-24. Further information on the monitoring

of complaints can be requested from:

Director of Corporate Services

Northern Ireland Audit Office

106 University Street,

Belfast, BT7 1EU

Tel No 028 9025 1000

Health and Safety

Our health and safety policy is available to all staff.

No incidents were recorded during 2024-25 or 2023-24 and there was nothing to report

to the Health and Safety Executive for Northern Ireland under the Reporting of Injuries,

Diseases and Dangerous Occurrences Regulations.

All staff have access to an independent and confidential counselling, support and advice

service. This counselling support is free to staff at the point of use and is totally independent.ContentsAccountability Report

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Statement of Accounting Officer’s

Responsibilities

Under Article 6(3) of the Audit Northern Ireland) Order 1987, the NIAO

is required to prepare, for each financial year, resource accounts of the

kind mentioned in Section 9 of the Government Resources and Accounts

Act (Northern Ireland) 2001, detailing the resources acquired, held or

disposed of during the year and the use of resources during the year

by the NIAO.

The accounts are prepared on an accruals basis and must give a true

and fair view of the state of affairs of the NIAO and of its income and

expenditure, Statement of Financial Position and cash flows for the

financial year.

In preparing the accounts, the Accounting Officer is required to comply

with the requirements of the Government Financial Reporting Manual

and in particular to:

• observe the relevant accounting and disclosure requirements,

and apply suitable accounting policies on a consistent basis;

• make judgements and estimates on a reasonable basis;

• state whether applicable accounting standards, as set out in the

Government Financial Reporting Manual, have been followed,

and disclose and explain any material departures in the accounts;

• prepare the accounts on a going concern basis; and

• confirm that the Annual Report and Accounts as a whole is fair,

balanced and understandable, and take personal responsibility

for the Annual Report and Accounts and the judgements required

for determining that it is fair, balanced and understandable.

Under the Audit (Northern Ireland) Order 1987, the Department of

Finance has appointed the C&AG for Northern Ireland as Accounting

Officer for the Northern Ireland Audit Office.

The C&AG for Northern Ireland’s relevant responsibilities as Accounting

Officer, including responsibility for the propriety and regularity of the

NIAO’s finances for which she is answerable, for the keeping of proper

records and for safeguarding the NIAO’s assets, are set out in Managing

Public Money Northern Ireland, published by the Department of Finance.

As the Accounting Officer, I have taken all the steps that I ought to

have taken to make myself aware of any relevant audit information

and to establish that the NIAO’s auditors are aware of that information.

So far as I am aware, there is no relevant audit information of which the

auditors are unaware.

Accountability Report

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Governance Statement

Introduction

As Accounting Officer for the NIAO, I have responsibility for maintaining effective governance and

a sound system of internal control that supports the achievement of the NIAO’s policies, aims and

objectives, while safeguarding the public funds and assets for which I am personally responsible, in

accordance with the responsibilities assigned to me in Managing Public Money Northern Ireland.

Structure of governance

The NIAO’s governance structure reflects the statutory position of the C&AG, as set out in two key

pieces of legislation:

• The Audit (Northern Ireland) Order 1987 provides for the office of C&AG to be a corporation sole

and established the NIAO to assist the C&AG in the discharge of her statutory functions.

• The Northern Ireland Act 1998 requires that, in exercising her functions, except for any function

conferred on her of preparing accounts, the C&AG shall not be subject to the direction or control of

any Minister or Northern Ireland department or the Assembly. Accordingly, the C&AG has complete

discretion in the discharge of her statutory audit functions, with responsibility for the programme of

audit work, all audit opinions and judgements resting with her alone.

As the holder of this office, I have primacy in determining the strategy, staffing and structure of the

Office and am responsible for designing and implementing the internal governance arrangements

to support the delivery of my statutory functions. In so doing, I seek to comply with the spirit of the

‘Corporate governance in central government departments: Code of good practice NI 2025’ (“the

Code”) issued by the Department of Finance. I accept the tenets of the Code as constituting best

practice, however the specific legal constitution of the office of C&AG as a corporation sole means

that I cannot directly apply the 2025 Code arrangements to the NIAO. In particular, there is no

provision in legislation for the establishment of a board.

This will be addressed through the Northern Ireland Assembly Audit Committee (NIA AC)’s report

on the “ Review of the Governance and Accountability Arrangements for the Northern Ireland Audit

Office and the Northern Ireland Public Services Ombudsman” issued in January 2022. This report

includes sixteen recommendations directly related to the NIAO, including the future tenure of the

C&AG, the appointment of a single auditor for the public sector, the formal separation of the NIAO

from the C&AG and its establishment as a body corporate in the form of a statutory board, and the

appointment of non-executive members of the NIAO statutory board by the NIA AC.

The outworkings of many of these recommendations will require legislation; however others,

such as the strengthening and updating of the current memorandum of understanding between

my Office and the NIA AC to reflect organisational changes is in progress.ContentsAccountability Report

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The internal governance arrangements of the NIAO that I have established are illustrated below.

NIAO Governance Structure

Overall I am content that the current NIAO governance arrangements are compliant

with the Code on an appropriate and proportionate basis.

Components of governance structure

NI Assembly Audit Committee (NIA AC)

I am accountable to the Northern Ireland Assembly via the NIA AC, which has the role

defined in section 66 of the Northern Ireland Act 1998. Under current arrangements,

the NIA AC’s responsibilities include examining the NIAO Estimate and laying it before

the Assembly; considering the NIAO’s Corporate Plan; examining the NIAO Annual

Report and Accounts and reports received from the external auditor; providing advice

to the Department of Finance on the appointment of the NIAO external auditor;

and tabling a motion in the Assembly in respect of the salary of the C&AG.

The key elements of the internal governance arrangements of the Office are as set out below.

Further information on these, including minutes of meetings, are available on our website.NIAO Advisory

Board

Audit and Risk

Assurance CommitteeRemuneration

CommitteeNorthern Ireland

Assembly Audit

Committee

NIAO Senior

Leadership TeamComptroller and

Auditor GeneralAccountability Report

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Advisory Board

The Advisory Board supports me in my role, as Accounting Officer, in my responsibility for issues

of risk, control and governance, by reviewing the comprehensiveness, reliability and integrity

of assurances. This includes supporting and advising me on:

• the planned activity and results of both internal audit and external audit;

• the adequacy of management’s response to issues identified by audit activity, including external

audit’s management letter; and

• monitoring progress on actions taken in response to recommendations.

During 2024-25, the Advisory Board met three times. The attendance at each of these meetings

is recorded below:

Other officials attended, as required, to assist with the discussion of agenda items.

The Office’s Information Governance Officer provided support services.Members present 03/06/24 21/10/24 26/02/25

Martin Pitt

(Chairperson until 1 December 2024)Yes Yes Not in post

Marie Mallon OBE

(Chairperson from 2 December 2024)Yes Yes Yes

John Turkington Yes Yes Yes

Fergus Devitt No Yes Yes

Dorinnia Carville

(Comptroller & Auditor General)Yes Yes Yes

Rodney Allen

(Chief Operating Officer)Yes Yes Yes

Bonnie MacRae

(Boardroom Apprentice)Yes Not in post Not in postContentsAccountability Report

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Audit and Risk Assurance Committee

The Advisory Board has established a sub-committee, the Audit and Risk Assurance Committee

(ARAC), to provide it with support in the delivery of its role. ARAC comprises three non-executive

members of the NIAO, excluding the NIAO Advisory Board Chairperson, who may attend, by invitation.

The Chairperson of ARAC, appointed by the Advisory Board Chairperson, was John Turkington.

During 2024-25 the Committee met 4 times. The attendance is recorded below:

Members present 22/05/24 24/06/24 16/09/24 27/01/25

John Turkington

(Chairperson)Yes Yes Yes Yes

Marie Mallon OBE Yes Yes Yes Yes

Fergus Devitt No Yes Yes Yes

Martin Pitt

(by invitation)Yes Yes No Yes

Bonnie MacRae

(Boardroom Apprentice)No Yes Not in Post Not in Post

I attended all these meetings along with my COO, Rodney Allen, and other staff from the NIAO,

as and when appropriate.

ARAC remains independent of all of the NIAO’s operational activities; under its Terms of Reference

it will meet at least four times a year. The Chairperson of the Committee may convene additional

meetings, as deemed necessary. It may request the attendance of officials of the Office to assist

with its discussions on any matter.

On behalf of ARAC, the Chairperson provides me with an annual report summarising the

Committee’s work for the year. ARAC is satisfied that it has fulfilled its duties as guided by its

Terms of Reference; taking account of the work of internal and external audit and assurances

provided to the Committee, every effort was made to review and oversee internal control

and risk management arrangements and to provide assurances to me, as Accounting Officer,

in the discharge of my accountability obligations.

Based on its work for the year, ARAC has provided me with constructive feedback on what

it views to be the risks, challenges and opportunities for the NIAO as well as an indication

of its areas of focus in 2025-26.Accountability Report

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Remuneration Committee

The Advisory Board has also established a further sub-committee, the Remuneration Committee,

which met twice in 2024-25. It comprises all non-executive Advisory Board members of the NIAO

and supports the Advisory Board in advising me on a variety of employment-related matters as

outlined in its Terms of Reference.

The attendance at each of these meetings is recorded below:

I attended all these meetings along with my COO, Rodney Allen, and other staff from the NIAO,

as and when appropriate.

Senior Leadership Team

The Senior Leadership Team (SLT) comprises me, the Chief Operating Officer and six Directors.

SLT normally meets on a weekly basis. SLT formally endorses the activities set out in the business

meetings against the achievement of the corporate strategic priorities once a month, and minutes

of these meetings are available on our website.

The SLT assists me in the delivery of the key business areas of the Office and, based on the

proportionate application of the ‘Corporate governance in central government departments:

Code of good practice NI 2025’, its responsibilities are: Strategic Projects; Strategic Performance;

People and Organisational Development; Financial Management; Corporate Governance;

Communication and Engagement; Risk Management; and Audit Quality.

The SLT has formally met 11 times in 2024-25 and covers normal scheduled business, with relevant

non-members invited to attend these meetings in relation to items such as office finances, risk

management, recruitment, people and organisational development and strategic performance

as well as audit quality.

Corporate Management Team

During 2024-25 a Corporate Management Team (CMT) was established to further strengthen

the governance arrangements in place within the Office. CMT comprises all Managers within

the NIAO and is responsible for operational leadership and contributing to the strategic

leadership within the NIAO.Members present 24/06/24 01/08/24

Marie Mallon OBE (Chairperson) Yes Yes

John Turkington Yes Yes

Martin Pitt Yes No

Fergus Devitt Yes YesContentsAccountability Report

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Risk management and control

The NIAO’s approach to risk management is guided by professional best practice and takes

full cognisance of the context and environment in which we operate. I have reviewed the risk

management process in place during the year and can confirm that it complies with all the principles

included within the revised Orange Book: Management of Risk – Principles and Concepts (2023).

Because of our public profile and the very nature of our work, we must uphold the highest standards

in our own operations and be able to stand the test of independent scrutiny and retain our credibility

and reputation with the Assembly, audited bodies and other stakeholders. At the same time, we must

ensure that we promote and secure value for money in our use of public funds.

We focus on proportionate risk management as an integral part of the way we undertake business

activities. Risk is managed in a structured way, taking on board the combination of the likelihood

of something happening and the impact which arises if it does happen, to assess the inherent risk.

We then set out the actions, if any, we take to constrain the risk to an acceptable level in accordance

with our risk appetite. We determine the risk appetite of the Office, which I review on an ongoing

basis. To this end, I have agreed a definition for the appetite of each risk in consultation with both

the SLT and ARAC.

The risk that remains, taking on board these actions, is our residual risk. In applying these

principles, we are accurately assessing the relative significance and prioritisation of each risk.

We have a comprehensive risk management strategy which sets out roles and responsibilities

and determines procedures for risk identification, monitoring, reporting and escalation of issues.

As in previous years, we have continued to manage risk through an assurance framework which

I consider to be proportionate to the size and the complexity of our organisation.

The assurance framework is a key tool for ARAC in fulfilling its responsibility to ensure that the

Office is effectively managing its inherent risks within risk appetite.

Within the assurance framework, the three lines of defence have a common objective, i.e. to help

the organisation achieve its strategic and corporate objectives through effective management of

risks, and have been defined as follows:

• The first line of defence is the internal control environment which identifies the policies,

procedures and processes put in place by management.

• The second line of defence is management’s own monitoring and risk assurance processes –

these include reviewing of targets and Key Performance Indicators, operational management

reporting, financial management accounts, quality assurance reviews and other reports issued

to senior management.

• The third line of defence is independent assurance provided by external sources. Given that

we are a small organisation, we have also included external audit and other independent

reviews in this category.

Through the adoption and implementation of the framework, the Office has a better

understanding of its risks and what it is doing to mitigate these. By feeding into the corporate

planning process, the framework can assist in the establishment of clear approved strategic

objectives. It also identifies the key internal and external risks and whether they have been

sufficiently addressed, the primary controls in place to manage the risks, any gaps in controls,

management actions to close the gaps, and sources of assurance, both internal and external. Accountability Report

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During 2024-25, Risk Management was a standing agenda item at all meetings of the SLT and

ARAC. The Corporate Risk Register Working Group (the Working Group), which is responsible

for directly briefing the SLT and, by extension, ARAC on risk management developments,

met 5 times in 2024-25. The timing of its meetings ensured that all requirements of the SLT

and ARAC were addressed on a timely basis. No near misses or breaches of significant control

arose during the year.

The Working Group is comprised of staff from within the Office and provides them with

development opportunities and a fresh perspective on how the NIAO considers and manages

risks. During the year SLT asked the Working Group to refresh the Corporate Risk Register within

the current strategic framework. As part of this process the Working Group sought feedback

from all staff on the risk management process and the Corporate Risk Register. In addition

I have asked our internal auditors to review the risk management process and assurance

framework within the NIAO and this work will conclude in 2025-26.

During 2024-25 we identified three key areas of risk:

• supporting and promoting public sector accountability and improvement;

• valuing our people and managing resources; and

• transforming our business (external and internal).

I am content that the risk management process is appropriate, risks identified are relevant

and have been effectively managed during the year.

Quality

The quality of our work is of fundamental importance to the work of this office. How we have

addressed quality is set out in the performance analysis section of this Annual Report with

further detail provided in my annual Quality Report.

Other areas of focus

Statement of information risk

We have privileged and wide-ranging access to data and information to support the discharge of my

statutory audit functions and ensure my reports to the Assembly are factual, accurate and complete.

We have a duty to respect this privileged access and to ensure that the personal information

entrusted to us is safeguarded properly.

We have policies and controls in place to ensure that access to information is correctly managed

and safeguarded throughout its life cycle, including creation, storage, transmission and destruction.

Staff are regularly made aware of these policies and controls, and awareness is reinforced through

information security training.

My Office is cognisant of the General Data Protection Regulation (UK GDPR) and the enabling

legislation (Data Protection Act 2018) and has established an effective compliance framework.

As a result, I:

• ensure staff are trained through e-learning;

• maintain information asset registers; and

• ensure an up-to-date Data Protection Policy is in place.ContentsAccountability Report

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Information risk is covered by the normal risk management arrangements. I am responsible for

ensuring information risks are assessed and mitigated to an acceptable level and am supported

in this role by the Senior Information Risk Owner, a member of the SLT, and various staff members

with security responsibilities.

Review of effectiveness

As Accounting Officer, I have responsibility for reviewing the effectiveness of the system of internal

control.

My review is informed by the work of Internal Audit and the executives within the NIAO who have

responsibility for the development and maintenance of the internal control framework, comments

made by External Audit in their Report to those charged with Governance and other reports, and

issues raised by ARAC. No issues were raised by the External Auditor.

Key risks which could affect the achievement of the Office’s objectives are managed actively under

the risk management arrangements described above, with progress reported regularly to ARAC.

Internal Audit provides an independent opinion on the adequacy and effectiveness of the NIAO’s

system of internal control, corporate governance and risk management. Following a procurement

process, Validera were appointed as our Internal Auditors for a period of 3 years from 2024-25.

They reviewed the following areas during 2024-25:

• Core Financial Controls

• Delivery Management: Management of Contracted-out Audits

• Health and Safety: Estates Management

• Information Management

All areas received a satisfactory rating, and all recommendations for improvement have been

accepted by management and either implemented or are in the process of being implemented.

Based upon the reviews performed during the year, Internal Audit has provided a conclusion as to the

adequacy and effectiveness of the Office’s risk management, control and governance processes. In its

opinion the NIAO has adequate and effective risk management, governance and control processes.

Significant internal control weaknesses

I can report that there were no significant weaknesses in the NIAO’s system of internal control

in 2024-25 which affected the achievement of the Office’s key policies, aims and objectives.

Dorinnia Carville

Comptroller and Auditor

General for Northern Ireland

30 June 2025

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Remuneration and Staff Report

Remuneration Policy

Comptroller and Auditor General

Under the provisions of the Northern Ireland Act 1998, the office of the C&AG for Northern Ireland

is a Crown appointment made on the nomination of the Northern Ireland Assembly. The C&AG for

Northern Ireland retains office unless removed by a resolution of the Northern Ireland Assembly

supported by at least two-thirds of members. The Audit (Northern Ireland) Order 1987 provides

for the remuneration of the C&AG for Northern Ireland to be met from the Consolidated Fund for

Northern Ireland, and this is included in the NIAO’s Estimate. The remuneration and associated

pension and national insurance contributions are disclosed in Note 3 to the Accounts on page 113

as Consolidated Fund Standing Services.

NIAO staff

The Audit (Northern Ireland) Order 1987 provides that the C&AG shall appoint such staff as she

considers necessary for assisting her in the discharge of her functions and for the purpose of

Article 4 of the Local Government (Northern Ireland) Order 2005 as amended (designation

of a member of staff as the Local Government Auditor).

The Audit (Northern Ireland) Order 1987 further provides that these staff shall be appointed

at such remuneration and on such other terms and conditions as the C&AG shall determine,

subject to her having regard to the desirability of keeping the remuneration and terms and

conditions broadly in line with those applying to the persons employed in the National Audit

Office and in the Northern Ireland Civil Service.

Pay progression for all staff, including senior management, relates solely to an incremental

pay scale step, where appropriate. The pay award involves a minimum percentage uplift in

gross terms which is awarded to all staff.

Service Contracts

Appointments are made on merit, based on fair and open competition. When holding

competitions and making appointments, the C&AG considers the Northern Ireland Civil

Service policies and procedures in this area.

Unless otherwise stated the officials covered by this report hold appointments that are

permanent. Early termination, other than for misconduct, would result in the individual

receiving compensation as set out in the Civil Service Compensation Scheme (Northern Ireland).ContentsAccountability Report

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Remuneration (including salary) and Pension Entitlements

Officials (Audited)

The following sections provide details of the remuneration and pension interests of the NIAO’s

Senior Leadership Team (SLT). The information on pages 79 to 91 is covered by the audit opinion.

* The value of pension benefits accrued during the year is calculated as the real increase in pension multiplied by 20 plus the real increase in

any lump sum less the contributions made by the individual. The real increases exclude increases due to inflation and any increase or decrease

due to a transfer of pension rights.

** Accrued pension benefits included in this table for any individual affected by the Public Service Pensions Remedy have been calculated based

on their inclusion in the legacy scheme for the period between 1 April 2015 and 31 March 2022, following the McCloud judgment. The Public

Service Pensions Remedy applies to individuals that were members, or eligible to be members, of a public service pension scheme on 31 March

2012 and were members of a public service pension scheme between 1 April 2015 and 31 March 2022. The basis for the calculation reflects the

legal position that impacted members have been rolled back into the relevant legacy scheme for the Remedy Period and that this will apply

unless the member actively exercises their entitlement on retirement to decide instead to receive benefits calculated under the terms of the

alpha scheme for the period from 1 April 2015 to 31 March 2022.

*** The salary of the C&AG is based on her salary at appointment in August 2021. The Northern Ireland Assembly Audit Committee (NIA AC) is

currently reviewing the position.Single total figure of remuneration

OfficialsSalary (£’000)Pension Benefits*

(to the nearest £1,000)Total (£’000)

2024 - 25 2023 - 24 2024 - 25 2023 - 24 2024 - 25 2023 - 24

**

Dorinnia

Carville***

C&Ag150-155 150-155 60 59 210-215 210-215

Rodney Allen

Coo130-135 120-125 116 37 225-250 155-160

Patrick Barr

Director95-100 90-95 56 47 150-155 135-140

Suzanne Jones

Director95-100 90-95 56 47 150-155 135-140

Colette Kane

Director / LGA105-110 95-100 70 21 175-180 115-120

Brian O’Neill

Director95-100 85-90 70 36 165-170 120-125

Seamus Wade

Director95-10085-90

(full year

equivalent

90-95)38 34 135-140 120-125

Tomas

Wilkinson

Director100-105 95-100 62 26 160-165 120-125Accountability Report

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Salary

‘Salary’ includes gross salary and any other allowance to the extent that it is subject to UK taxation.

This report is based on accrued payments made by the NIAO and thus recorded in these accounts.

Benefits in kind

The monetary value of benefits in kind covers any expenditure incurred by the NIAO and treated

by HM Revenue and Customs as a taxable emolument. No such benefits were provided to the

NIAO’s staff during either 2024-25 or 2023-24.

Benefits in kind for non-executive members of the Board are included within their salary and relate

to travel to the NIAO for Board and other committee meetings and include the associated income

tax and National Insurance liability, which is met by the NIAO following agreement with HMRC.

Fair Pay Disclosures (Audited)

Pay Ratios

Reporting bodies are required to disclose the relationship between the remuneration of the

highest-paid member of the SLT in their organisation and the lower quartile, median and upper

quartile remuneration of the organisation’s workforce.

The banded remuneration of the highest paid member of the SLT in the NIAO in the financial

year 2024-25 was £150,000 to £155,000 (2023-24: £150,000 to £155,000). The relationship between

the mid-point of this band and the remuneration of the Office’s workforce is disclosed below.

2024 - 25 25th percentile Median 75th percentile

Total Remuneration £43,069 £48,000 £57,733

Pay Ratio 3:5:1 3.2:1 2:6:1

2023-24 25th percentile Median 75th percentile

Total Remuneration £40,824 £48,004* £53,301

Pay Ratio 3.7:1 3.5:1 2.9:1

*The median percentile for 2023-24 has been restated to align with the methodology used in 2024-25 which is considered more meaningful.ContentsAccountability Report

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Percentage Change for: 2024-25 v 2023-24 2023-24 v 2022-23

Average Employee

Total Remuneration0% 3%

Highest Paid Director’s

Total Remuneration*0% 0%

*The highest paid director’s total remuneration is based on her salary at appointment in August 2021. The Northern Ireland Assembly Audit

Committee (NIA AC) is currently reviewing the position.The 25th percentile, median and 75th percentile remuneration figures are based on annualised

salaries for the last month of the financial year, adjusted for any non-consolidated payments

made to staff during the year.

Total remuneration includes salary and benefits-in-kind. It does not include severance payments,

employer pension contributions or the cash equivalent transfer value of pensions.

The values for the salary component of remuneration for the 25th percentile, median and 75th

percentile were £43,069 (2023-24: £40,824), £48,000 (2023-24: £48,004) and £57,733 (2023-24:

£53,301) respectively.

No employees received remuneration more than the highest paid member of the SLT in either

2024-25 or 2023-24.

Remuneration ranged from £23,177 to £154,527 (2023-24: £21,052 to £154,527).

The C&AG’s role is the highest paid position in NIAO and she was the highest paid member of

the SLT during 2024-25. Her salary was in the range £150,000 to £155,000 (2023-24: £150,000

to £155,000). This was 3.2 times (2023-24: 3.5) the median remuneration of the workforce which

was £48,000 (2023-24: £48,004).

Percentage Change in Remuneration

Reporting bodies are also required to disclose the percentage change from the previous

financial year in the:

• salary and allowances; and

• performance pay and bonuses of the highest paid member of the SLT and their employees

as a whole.

The percentage changes in respect of the NIAO are shown in the following table. It should

be noted that the calculation for the highest paid member of the SLT is based on the mid-point

of the band within which their remuneration fell in each year.

No performance pay or bonuses were payable in these years.Accountability Report

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Page 79

Name and TitleAccrued pension

at pension age

as at 31/3/25

and related

lump sumReal increase

in pension

and related

lump sum at

pension ageCETV at

31 March

2025CETV at

31 March

2024Real

increase

in CETV

Official (£’000) (£’000) (£’000) (£’000) (£’000)

Dorinnia

Carville

C&AG10-15 2.5-5 135 81 36

Rodney Allen

Coo65-70

(plus a lump

sum of 175-180)5-7.5

(plus a lump

sum of 7.5-10)1,559 1,389 111

Patrick Barr

Director25-30 2.5-5 381 324 36

Suzanne Jones

Director25-30 2.5-5 358 305 33

Colette Kane

Director / LGA40-45

(plus a lump sum of

110-115)2.5-5

(plus a lump

sum of 2.5-5)1,042 938 61

Brian O’Neill

Director30-35

(plus a lump

sum of 75-80)2.5-5

(plus a lump

sum of 2.5-5)662 576 57

Seamus Wade

Director0-5 0-2.5 65 29 26

Tomas

Wilkinson

Director30-35

(plus a lump

sum of 75-80)2.5-5

(plus a lump

sum of 2.5-5)719 633 55Pension Benefits – Officials (Audited)

* The pension benefits of any members affected by the Public Service Pensions Remedy which were reported in 2022-23 based on alpha

membership for the period between 1 April 2015 and 31 March 2022 have been reported since 2023-24 based on PCSPS(NI) membership

for the same period.

Pension Arrangements C&AG

The Audit (Northern Ireland) Order 1987 provides for pensionable service by the C&AG for Northern

Ireland to be covered by the Northern Ireland Principal Civil Service Pension Scheme (PCSPS (NI))

which is non-contributory and unfunded. The Order also provides for defined pension benefits to

be met from the Consolidated Fund for Northern Ireland and no liability rests with the NIAO.ContentsAccountability Report

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Northern Ireland Civil Service (NICS) Pension Schemes

Pension benefits are provided through the Northern Ireland Civil Service pension schemes which

are administered by Civil Service Pensions (CSP).

The alpha pension scheme was initially introduced for new entrants from 1 April 2015. The alpha

scheme and all previous scheme arrangements are unfunded with the cost of benefits met by monies

voted each year. The majority of members of the Classic, Premium, Classic Plus and Nuvos pension

arrangements (collectively known as the Principal Civil Service Pension Scheme (Northern Ireland)

[PCSPS(NI)]) also moved to alpha from that date. Transitional protection measures introduced

alongside these reforms meant any members who, on 1 April 2012, were within 10 years of their normal

pension age remained in their previous scheme arrangement (full protection) and those who were

between 13.5 years and 10 years of their normal pension age were given a choice between moving

to alpha on 1 April 2015 or at a later date determined by their age (tapered protection).

McCloud Judgment and 2015 Remedy

In 2018, the Court of Appeal found that the transitional protections put in place back in 2015 that

allowed older workers to remain in their original scheme, were discriminatory on the basis of age.

As a result, steps have been taken by the Department of Finance to remedy this discrimination.

The Department has now made regulations which remedy the discrimination by:

• ensuring all active members are treated equally for future service as members of the reformed

alpha scheme only from 1 April 2022, and

• providing each eligible member with options to have their pension entitlements for the period

when the discrimination existed between 1 April 2015 and 31 March 2022 (the Remedy Period)

retrospectively calculated under either the current (reformed) scheme rules, or the older

(pre-reform) legacy rules which existed before 2015.

This means that all active NICS Pension Scheme members are in the same pension scheme,

alpha, from 1 April 2022 onwards, regardless of age. This removes the discrimination going

forwards in providing equal pension provision for all scheme members.

The Department is now implementing the second part of the remedy, which addresses

the discrimination which was incurred by affected members between 1 April 2015 and

31 March 2022.Accountability Report

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Page 81

Eligible members with relevant service between 1 April 2015 and 31 March 2022 (the Remedy Period)

will now be entitled to a choice of alternative pension benefits in relation to that period. i.e. calculated

under the pre-reformed PCSPS(NI) ‘Classic’, ‘Premium’ or ‘Nuvos’ rules or alternatively calculated

under the reformed alpha rules. As part of this ‘retrospective’ remedy most active members will now

receive a choice about their Remedy Period benefits at the point of retirement. This is known as the

Deferred Choice Underpin (DCU). For those members who already have pension benefits in payment

in relation to the Remedy Period, they will receive an Immediate Choice. There are a significant

number of Immediate Choice Remediable Service Statement (RSS) packs to issue. This process

involves complex calculations to provide members with individually tailored statements. Due to the

complexity of the calculations and some prolonged work to finalise policy elements of the remedy,

not all Immediate Choice packs will issue by 31 March 2025 as originally planned. The legislation for

the 2015 Remedy provides discretion which allows the Scheme Manager to extend beyond this date

so it has become necessary to engage this discretion.

At this stage, allowance has not yet been made within CETVs for this remedy. Further information

on the remedy will be included in the NICS pension scheme accounts which, once published, are

available at DoF Annual Reports and Accounts.

As part of the remedy involved rolling back all remediable service into the relevant legacy PCSPS(NI)

arrangement for the 7-Year Remedy Period, the value of pension benefits for the 2024-25 pension

disclosures for affected members continue to be based on the rolled back position.

Alpha

Alpha is a ‘Career Average Revalued Earnings’ (CARE) arrangement in which members accrue pension

benefits at a percentage rate of annual pensionable earnings throughout the period of scheme

membership. The current accrual rate is 2.32%.

From 1 April 2015, all new entrants joining the NICS can choose between membership of alpha

or joining a ‘money purchase’ stakeholder arrangement with a significant employer contribution

(Partnership Pension Account).ContentsAccountability Report

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Information on the PCSPS(NI) – Closed Scheme

Staff in post prior to 30 July 2007 were eligible to be in one of three statutory based ‘final salary’

legacy defined benefit arrangements (Classic, Premium and Classic Plus). From April 2011, pensions

payable under these arrangements have been reviewed annually in line with changes in the cost

of living. New entrants who joined on or after 1 October 2002 and before 30 July 2007 will have

chosen between membership of Premium or joining the Partnership Pension Account.

New entrants who joined on or after 30 July 2007 were eligible for membership of the legacy

PCSPS(NI) Nuvos arrangement or they could have opted for a Partnership Pension Account.

Nuvos was also a CARE arrangement in which members accrued pension benefits at a percentage

rate of annual pensionable earnings throughout the period of scheme membership. The rate of

accrual was 2.3%.

Benefits in Classic accrued at the rate of 1/80th of pensionable salary for each year of service.

In addition, a lump sum equivalent to three years’ pension is payable on retirement. For Premium,

benefits accrued at the rate of 1/60th of final pensionable earnings for each year of service. Unlike

Classic, there is no automatic lump sum (but members may give up (commute) some of their pension

to provide a lump sum). Classic Plus is essentially a variation of Premium, but with benefits in respect

of service before 1 October 2002 calculated broadly as per Classic.

Partnership Pension Account

The Partnership Pension Account is a stakeholder pension arrangement. The employer makes

a basic contribution of between 8% and 14.75% (depending on the age of the member) into

a stakeholder pension product chosen by the employee. The employee does not have to

contribute but where they do make contributions, the employer will match these up to a limit

of 3% of pensionable salary (in addition to the employer’s basic contribution). Employers also

contribute a further 0.5% of pensionable salary to cover the cost of centrally provided risk

benefit cover (death in service and ill health retirement).

Annual Benefit Statements

Active members of the pension scheme will receive an Annual Benefit Statement. The accrued

pension quoted is the pension the member is entitled to receive when they reach their scheme

pension age, or immediately on ceasing to be an active member of the scheme if they are at or over

pension age. The normal scheme pension age in alpha is linked to the member’s State Pension Age

but cannot be before age 65. The Scheme Pension age is 60 for any pension accrued in the legacy

Classic, Premium, and Classic Plus arrangements and 65 for any benefits accrued in Nuvos. Further

details about the NICS pension schemes can be found at the website Civil Service Pensions (NI) .

Pension Increases

All pension benefits are reviewed annually in line with changes in the cost of living. Any applicable

increases are applied from April and are determined by the Consumer Prices Index (CPI) figure for

the preceding September. The CPI in September 2024 was 1.7% and HM Treasury has announced

that public service pensions will be increased accordingly from April 2025. Accountability Report

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Employee Contribution Rates

Employee contribution rates for all members for the periods covering 1 April 2024 – 31 March 2025

and 1 April 2025 – 30 June 2025 are as follows2.

Cash Equivalent Transfer Values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension

scheme benefits accrued by a member at a particular point in time. The benefits valued are the

member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV

is a payment made by a pension scheme or arrangement to secure pension benefits in another

pension scheme or arrangement when the member leaves a scheme and chooses to transfer the

benefits accrued in their former scheme. The pension figures shown relate to the benefits that

the individual has accrued as a consequence of their total membership of the pension scheme,

not just their service in a senior capacity to which disclosure applies.

The CETV figures, and from 2003-04 the other pension details, include the value of any pension

benefit in another scheme or arrangement which the individual has transferred to the NICS

pension arrangements. They also include any additional pension benefit accrued to the member

as a result of their purchasing additional years of pension service in the scheme at their own cost.

CETVs are calculated in accordance with The Occupational Pension Schemes (Transfer Values)

Regulations 1996 (as amended).

HM Treasury provides the assumptions for discount rates for calculating CETVs payable from the

public service pension schemes. On 27 April 2023, HM Treasury published guidance on the basis for

setting the discount rates for calculating cash equivalent transfer values payable by public service

pension schemes. In their guidance of 27 April 2023, HM Treasury advised that, with immediate effect,

the discount rate adopted for calculating CETVs should be in line with the new SCAPE discount rate

of 1.7% above CPI inflation, superseding the previous SCAPE discount rate of 2.4% above CPI inflation.

All else being the same, a lower SCAPE discount rate leads to higher CETVs. The HM Treasury

Guidance of 27 April 2023 can be found at Basis for setting the discount rates for calculating cash

equivalent transfer values payable by public service pension schemes - GOV.UK . As at the year-end

there have been no further changes to the SCAPE discount rate of 1.7% above CPI inflation since

the HM Treasury guidance was published.

2 Rates are expected to change mid-year as a result of the outcome of the consultation on Scheme Yield and Member Contributions.Annualised Rate of Pensionable

Earnings (Salary Bands) From

01 April 2024 to 31 March 2025Annualised Rate of Pensionable

Earnings (Salary Bands) From

01 April 2025 to 30 June 2025Contribution

rates -

All members

From To From To

£0 £26,302.49 £0 £27,091.99 4.6%

£26,302.50 £59,849.99 £27,092.00 £61,645.99 5.45%

£59,850.00 £160,964.99 £61,646.00 £165,793.99 7.35%

£160,965.00 and above £165,794.00 and above 8.05%ContentsAccountability Report

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Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase

in accrued pension due to inflation, contributions paid by the employee (including the value of

any benefits transferred from another pension scheme or arrangement) and uses common market

valuation factors for the start and end of the period (which therefore disregards the effect of any

changes in factors).

Compensation for loss of office

No members of senior management lost office in 2024-25.

Non-Executive Members

The Advisory Board comprises both executive and non-executive members. The Chairperson

of the Advisory Board and non-executive members are paid at a rate and on such conditions as

determined by the market. No Advisory Board members receive or make pension contributions.

During 2024-25, the following remuneration was payable to non-executive members.Accountability Report

Date of ContractLength of

contract (years)2024 - 25

Salary

£’0002023 - 24

Salary

£’000

Martin Pitt 01-12-21 3 7.5-10 10-12.5

Marie Mallon OBE* 01-04-22 3 7.5-10 2.5-5

John Turkington 01-04-22 3 2.5-5 2.5-5

Fergus Devitt** 08-06-23 3 0-2.5 2.5-5

* Marie Mallon OBE was appointed Board Chairperson from 2 December 2024.

**Fergus Devitt was appointed for a period of three years from 8 June 2023 and resigned on 27 January 2025.

Three new non-executive directors were appointed during the year for a 3 year period.

Dean Sullivan and Claire McAleenan were appointed on the 26 February 2025 and Jill

McLaughlin was appointed on the 18 March 2025.

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ContentsAccountability Report

Staff Report

Staff Costs (Audited)

2024-25

£’0002023-24

£’000

Staff CostsPermanently

employed staffOthers Total Total

Wages and salaries 6,097 44 6,141 5,644

Social security costs 680 - 680 621

Other pension costs 2,019 - 2,019 1,801

Sub Total 8,796 44 8,840 8,066

Less recoveries in

respect of outward

secondments- - - -

Total net costs 8,796 44 8,840 8,066

The salary and other costs of the C&AG are not included within the above cost as her remuneration

is met directly from the Consolidated Fund for Northern Ireland.

The Northern Ireland Civil Service main pension schemes are unfunded multi-employer defined

benefit schemes, but the NIAO’s share of the underlying assets and liabilities cannot be provided.

The Public Service Pensions Act (NI) 2014 provides the legal framework for regular actuarial valuations

of the public service pension schemes to measure the costs of the benefits being provided. These

valuations inform the future contribution rates to be paid into the schemes by employers every four

years following the scheme valuation. The Act also provides for the establishment of an employer

cost cap mechanism to ensure that the costs of the pension schemes remain sustainable in future.

The Government Actuary’s Department (GAD) is responsible for carrying out scheme valuations.

The Actuary reviews employer contributions every four years following the scheme valuation.

The 2020 Scheme Valuation was completed by GAD in October 2023. The outcome of this

valuation was used to set the level of contributions for employers from 1 April 2024 to

31 March 2027.

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Accountability Report

The Cost Cap Mechanism (CCM) is a measure of scheme costs and determines whether member

costs or scheme benefits require adjustment to maintain costs within a set corridor. Reforms were

made to the CCM which was applied to the 2020 scheme valuations and included the introduction

of a reformed scheme-only cost control mechanism which assesses just the costs relating to reformed

schemes (alpha for the NICS) and introduced an economic check. Prior to the cost control mechanism

reforms, legacy scheme (PCSPS(NI)) costs associated with active members were also captured in the

mechanism. The reformed-scheme-only design and the economic check were applied to the 2020

scheme valuations for the devolved public sector pension schemes, including the NICS pension

scheme. The 2020 scheme valuation outcome was that the core cost cap cost of the scheme lies

within the 3 per cent cost cap corridor. As there is no breach of the cost control mechanism, there

is no requirement for the Department of Finance to consult on changes to the scheme. Further

information can be found on the Department of Finance website https://www.finance-ni.gov.uk/

articles/northern-ireland-civil-service-pension-scheme-valuations.

For 2024-25, employers’ contributions of £2,019,296 were payable to the NICS pension arrangements

at a flat rate of 34.25% of pensionable pay, for all salaries (2023-24: £1,800,361 at one of three rates

in the range 28.7% to 34.2%).

Employees can opt to open a partnership pension account, a stakeholder pension with

an employer contribution. No employers’ contributions were paid in 2023-24 or 2024-25.

The partnership pension account offers the member the opportunity of having a ‘free’

pension. The employer will pay the age-related contribution and if the member does

contribute, the employer will pay an additional amount to match member contributions

up to 3% of pensionable earnings.

No employer contributions were payable to the NICS Pension schemes to cover the cost

of the future provision of lump sum benefits on death in service and ill health retirement

of these employees for 2024-25 and 2023-24. No contributions were due to the partnership

pension providers at the reporting period date either.

In both 2024-25 and 2023-24 no-one retired early on ill-health grounds; the total additional

accrued pension liabilities in the year amounted to £NIL (2023-2024: £NIL).

2024-25 2023-24

Permanently

employed staffOthers Total Total

114 1 115 117Average number of persons employed (Audited)

The average number of full-time equivalent persons employed during the year was as follows.

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ContentsAccountability Report

Male Female Total

Senior Management 5 2 7

Other Staff 47 66 113

Total 52 68 120There were 120 permanent full-time equivalent staff at 31 March 2025 (2023-24: 116).

Reporting of Civil Service and other compensation

schemes – exit packages (Audited)

There were no compulsory redundancies in 2024-25 (2023-24: nil).

Consultancy

In 2024-25, we paid £19,200 (2023-24: £25,200) to external consultants. This amount is included

in Professional Services Bought In which is disclosed in Note 3 to the Financial Statements.

Temporary staff

In 2024-25, we paid £43,625 (2023-24: £2,050) for temporary staff. This amount is included

in Wages and Salaries in Note 3 to the Financial Statements.

‘Off-Payroll’ Engagements

Off-payroll engagements are those where individuals, either self-employed or acting through

a personal service company, are paid gross by the employer. In line with HM Treasury requirements,

DoF requires disclosure of such engagements that were in place during 2024-25. We had no

off-payroll engagements in place at any time during 2024-25 or 2023-24.

Sickness absence data

We had an overall sickness absence rate of 5.49 days lost per employee between April 2024

and March 2025 (2023-24: 5.7 days lost). Sixty-one per cent of absence arose due to a small number

of staff suffering from long term sickness while 56 per cent of staff had no absences in 2024-25.

All staff have access to an Employee Assistance Programme which includes access to a confidential

helpline and counselling, and guidance on a range of health and wellbeing matters. A Wellbeing

Strategy is in place to help promote healthy lifestyles. Through this, a range of health and wellbeing

initiatives are provided to staff with a particular focus on mental, physical, social and financial wellbeing.

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Accountability Report

Employee Consultation and Trade Union Relationships

The NIAO recognises the importance of good industrial relations and is committed to engaging

effectively with its staff. The NIAO consults and/or negotiates with recognised Trade Union,

NIPSA, on matters relating to HR policy, pay, terms and conditions. Monthly meetings take

place with local representatives to enable consultation on any relevant matters.

Staff Policies regarding Disabled People

The NIAO is an equal opportunities employer, committed to the promotion of equality in all

aspects of working life. Full and fair consideration is given to applications for employment made

by disabled persons and reasonable adjustments for disabled job applicants are made on request.

The NIAO makes reasonable adjustments to enable disabled staff members to perform their

duties effectively and participate as fully as possible in all aspects of the working environment.

Occupational Health Service provide advice and guidance on the provision of reasonable

adjustments which are in place for a number of staff.

Employee Engagement

In 2024-25, all staff were invited to take part in the NIAO’s biennial Staff Engagement Survey

and supplementary staff focus groups. 95 staff participated in the survey (80% response rate)

and the results were shared with staff on 22 May 2025. The NIAO’s People Engagement Programme

has been developed in response to the survey findings, providing a thematic framework to focus

on areas where staff have indicated scope for further enhancement.

Diversity & Inclusion

Equity, Diversity and Inclusion (EDI) is intrinsic to the NIAO’s Corporate Plan 2024-29 and is

one of the five pillars of the NIAO’s People Strategy 2024-29. Our aim is to ensure all our people

feel they work in an inclusive environment which celebrates diversity, and everyone has a sense

of belonging. To further our commitment to Equity, Diversity and Inclusion, in March 2025,

the NIAO made an application to Diversity Mark for accreditation. The NIAO is currently

developing an Equity, Diversity and Inclusion Strategy that will inform an EDI action plan.

Learning & Development

The NIAO Learning, Development and Talent Strategy directly aligns with our Corporate Plan

2024-29 and is a fundamental part of the strategic pillars within the NIAO People Strategy.

Recruitment, retention and development of staff continues to be a high priority for the NIAO,

in order to maintain and develop as an organisation. NIAO provides an extensive programme

of learning and development for staff that includes professional and technical development,

leadership development, management development, skills development, trainee development

and personal development. For a number of years the NIAO have operated a successful trainee

programme supporting Higher-Level Apprentices and Trainee Accountants. Trainees make up

eighteen per cent of the NIAO’s current workforce. This year we will see our first trainee who

started as a Higher-Level Apprentice successfully complete the programme to qualify as a

chartered accountant. Another of our Higher-Level Apprentice trainees was recognised as

a Young Apprentice of the Year finalist.

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ContentsAssembly Accountability and Audit Report

Assembly Accountability

and Audit Report

Statement of Outturn against Assembly Supply (SOAS)

In addition to the primary statements prepared under International Financial Reporting

Standards (IFRS), the Government Financial Reporting Manual (FReM) requires the NIAO

to prepare a Statement of Outturn against Assembly Supply (SOAS) and supporting notes.

The SOAS and related notes are subject to audit, as detailed in the Independent Auditor’s

Certificate and Report to the Northern Ireland Assembly.

The SOAS is a key accountability statement that shows, in detail, how an entity has spent against its

Supply Estimate. Supply is the monetary provision (for resource and capital purposes) and cash (drawn

primarily from the Consolidated Fund) that the Assembly gives statutory authority for entities to utilise.

The Estimate details Supply and is voted on by the Assembly at the start of the financial year and

is then normally revised by a Supplementary Estimate at the end of the financial year. It is the

final Estimate, normally the Spring Supplementary Estimate, which forms the basis of the SOAS.

Should an entity exceed the limits set by its Supply Estimate and corresponding Act of the

Assembly, called control limits, its accounts will receive a qualified opinion.

The format of the SOAS mirrors the Supply Estimates to enable comparability between what

the Assembly approves and the final outturn. The Supply Estimates are voted by the Assembly

and published on the DoF website Estimates publications | Department of Finance.

The SOAS contains a summary table, detailing performance against the control limits that the

Assembly has voted on, cash spent (budgets are compiled on an accruals basis and so outturn

won’t exactly reconcile to cash spent) and administration.

The supporting notes detail the following: Outturn detailed by Estimate line, providing a more

detailed breakdown (note 1); a reconciliation of outturn to net expenditure in the SOCNE, to tie

the SOAS to the financial statements (note 2); and a reconciliation of net resource outturn to net

cash requirement (note 3).

The SOAS and Estimates are compiled against the budgeting framework, which is similar to,

but different from, IFRS. An understanding of the budgeting framework and an explanation

of key terms is provided on page 52, in the financial review section of the Performance Report.

Further information on the Public Spending Framework and the reasons why budgeting rules

are different to IFRS can also be found in chapter 1 of the Consolidated Budgeting Guidance,

available on www.gov.uk.

The SOAS provides a detailed view of financial performance, in a form that is voted on and

recognised by the Assembly. The financial review, in the Performance Report, provides a summarised

discussion of outturn against estimate, and functions as an introduction to the SOAS disclosures.

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Assembly Accountability and Audit Report

Summary table, 2024-25, all figures presented in £’000s

Net Cash Requirement 2024-25, all figures presented in £’000sType of spend NoteOutturn EstimateOutturn vs

Estimate

saving/

(excess)Prior Year

Outturn

total,

2023–24 VotedNon-

Voted Total VotedNon-

Voted Total Voted Total

Departmental

Expenditure

Limit

ResourceSOAS

1.19,071 266 9,337 9,347 266 9,613 276 276 8,252

CapitalSOAS

1.2- - - 30 - 30 30 30 43

Total Budget

Expenditure9,071 266 9,337 9,377 266 9,643 306 306 8,295

Non-Budget

Expenditure- - - - - - - - -

Total Budget

and Non-

Budget

Expenditure9,071 266 9,337 9,377 266 9,643 306 306 8,295

Note 1: This table mirrors Part I of the Estimates.

Note 2: Figures in the areas outlined in bold are voted totals subject to Assembly control.

Note 3: Prior year outturn includes both voted and non-voted expenditure.

Note 1: This table mirrors Part I of the Estimates.

Note 2: Figures in the areas outlined in bold are voted totals subject to Assembly control.Item Note Outturn EstimateOutturn vs

Estimate,

saving/(excess)Prior Year

Outturn total,

2023–24

Net Cash requirement SOAS 3 8,974 9,252 278 8,088

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Type of spend

(Resource) Resource outturn EstimateOutturn vs

Estimates

saving/

(excess)Prior Year

Outturn

total,

2023-24

Programme

Gross Income Net Total Total

Spending in

Departmental

Expenditure Limits (DEL)

Voted Expenditure

1. Audit and Assurance

Services12,208 (3,137) 9,071 9,347 276 8,252

Total Voted DEL 12,208 (3,137) 9,071 9,347 276 8,252

Non-voted Expenditure

2. Comptroller and

Auditor General’s Costs266 - 266 266 - 257

Total non-voted DEL 266 - 266 266 - 257

Total spending in DEL 12,474 (3,137) 9,337 9,613 276 8,509Programme costs 2024-25, all figures presented in £’000s

Notes to the Statement of Outturn against Assembly Supply,

2024-25, (£’000)

SOAS1.1 Outturn detail, by Estimate Line

SOAS 1.1 Analysis of resource outturn by Estimate line, all figures presented in £’000s.Note 1: This table mirrors Part I of the Estimates.

Note: This note mirrors Parts II of the Estimates: (Revised) Subhead Detail and Resource to Cash Reconciliation.Type of spend Note Outturn EstimateOutturn vs

Estimate,

saving/(excess)Prior Year

Outturn total,

2023–24

Programme costs SOAS 1.1 9,071 9,347 276 8,252ContentsAssembly Accountability and Audit Report

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Type of spend (Capital) Outturn EstimateOutturn vs

Estimates

saving/

(excess)Prior Year

Outturn

total,

2023-24

Programme

Gross Income Net Total Total

Spending in

Departmental

Expenditure Limits (DEL)

Voted Expenditure

Audit and Assurance

Services- - - 30 30 43

Total Voted DEL - - - 30 30 43

SOAS 2. Reconciliation of Outturn to Net Operating Expenditure

No reconciliation is required as resource outturn in the SOAS is the same as net operating

expenditure in the SOCNE.SOAS 1.2 Analysis of capital outturn by Estimate line, all figures presented in £’000s.

Note: This table mirrors Parts II of the Estimates: (Revised) Subhead Detail.Assembly Accountability and Audit Report

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SOAS 3. Reconciliation of Net Resource Outturn to Net Cash Requirement

Item NoteOutturn total

£’000Estimate

£’000Outturn vs

Estimate,

saving/(excess)

£’000

Total Resource outturn SOAS 1.1 9,337 9,613 276

Total Capital outturn SOAS 1.2 - 30 30

Adjustments to remove non-cash items:

Depreciation, impairments and revaluations(181) (225) (44)

Adjustments to reflect movements in working

balances:

Increase/(decrease) in receivables(27) 100 127

(Increase)/decrease in payables 111 - (111)

Total 9,240 9,518 278

Removal of non-voted budget items

Consolidated Fund Standing Services (266) (266) -

Net cash requirement 8,974 9,252 278

Note: This mirrors Parts II of the Estimates: Resources to Cash Reconciliation.

As noted in the introduction to the SOAS above, outturn and the Estimates are compiled against

the budgeting framework, not on a cash basis. This reconciliation bridges the resource and capital

outturn to the net cash requirement. ContentsAssembly Accountability and Audit Report

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Other Assembly Accountability Disclosures (Audited)

Losses and Special Payments

No exceptional kinds of expenditure, such as losses and special payments that require separate

disclosure because of their nature or amount, were incurred.

Fees and Charges

The Office has a target of recovering the full cost of undertaking fee paying work.

The information here is provided solely to meet the requirements of the Department of Finance’s

“Fees and Charges” guide and is not disclosed for the purpose of IFRS 8.

Variations in fee income and costs, when comparing one year with another, are due to differences

in the timing of audits being completed and significant issues arising in certain audits.

Remote Contingent Liabilities

In addition to contingent liabilities reported in the financial statements, the Office has no other

liabilities for which the likelihood of a transfer of economic benefit in settlement is too remote

but are still in the scope of IAS 37. 2024-25

£’0002023-24

£’000

Income Full CostSurplus/

(deficit) Income Full CostSurplus/

(deficit)

Fee Income

Nao 149 143 6 461 434 27

Other Financial Audit 1,713 1,779 (66) 1,560 1,692 (132)

Local Government Audit 1,123 1,218 (95) 1,027 995 32

Nfi 148 136 12 - - -

3,133 3,276 (143) 3,048 3,121 (73)

Dorinnia Carville

Comptroller and Auditor

General for Northern Ireland

30 June 2025

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Independent Auditor’s Certificate and Report

to the Northern Ireland Assembly

Opinion on financial statements

We certify that we have audited the financial statements of the Northern Ireland Audit Office for the year

ended 31 March 2025 under the Audit (Northern Ireland) Order 1987. The financial statements comprise:

• Statement of Financial Position as at 31 March 2025;

• Statement of Comprehensive Net Expenditure, Statement of Cash Flows and Statement of Changes

in Taxpayers’ Equity for the year ended; and

• the related notes including the significant accounting policies.

The financial reporting framework that has been applied in their preparation of the financial statements

is applicable law and UK adopted international accounting standards as interpreted and adapted by the

Government Financial Reporting Manual.

We have also audited the Statement of Outturn against Assembly Supply, and the related notes, and

the information in the Accountability Report that is described in that report as having been audited.

In our opinion the financial statements:

• give a true and fair view of the state of the Northern Ireland Audit Office’s affairs as at 31 March 2025

and of its net operating expenditure, cash flows and changes in taxpayers’ equity for the year then

ended; and

• have been properly prepared in accordance with the Audit (Northern Ireland) Order 1987 and

relevant Department of Finance directions issued thereunder.

Opinion on regularity

In our opinion, in all material respects:

• the Statement of Outturn against Assembly Supply properly presents the outturn against voted

Assembly control totals for the year ended 31 March 2025 and shows that those totals have not

been exceeded; and

• the expenditure and income recorded in the financial statements have been applied to the

purposes intended by the Assembly and the financial transactions recorded in the financial

statements conform to the authorities which govern them.

Basis for opinions

We conducted our audit in accordance with International Standards on Auditing (ISAs) (UK), and

applicable law. Our responsibilities under those standards are further described in the Auditor’s

responsibilities for the audit of the financial statements section of this report.

We are independent of Northern Ireland Audit Office in accordance with the ethical requirements that are

relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s Ethical

Standard, and have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinions.ContentsAssembly Accountability and Audit Report

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Assembly Accountability and Audit Report

Basis for the regularity opinion on the financial statements

We are required to obtain evidence sufficient to give reasonable assurance that the expenditure

to which the statement relates has been included lawfully and in accordance with the authority

that governs it and that the money to which the statement relates, received by the Northern Ireland

Audit Office for a particular purpose or particular purposes, has not been expended otherwise than

for that purpose or purposes. We have conducted our work in accordance with Practice Note 10

‘Audit of Financial Statements and Regularity of Public Sector Bodies in the United Kingdom’.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that Northern Ireland Audit Office’s use of

the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating

to events or conditions that, individually or collectively, may cast significant doubt on the Northern

Ireland Audit Office’s ability to continue as a going concern for a period of at least twelve months

from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Accounting Officer with respect to going

concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the annual report other than the

financial statements, the parts of the Accountability Report described in that report as having been

audited, and our auditor’s report. The Accounting Officer is responsible for the other information.

Our opinion on the financial statements does not cover the other information and except to the

extent otherwise explicitly stated in our auditor’s report, we do not express any form of assurance

conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other

information is materially inconsistent with the financial statements or our knowledge obtained

in the audit or otherwise appears to be materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are required to

determine whether this gives rise to a material misstatement in the financial statements themselves.

If, based on the work we have performed, we conclude that there is a material misstatement of this

other information, we are required to report that fact.

We have nothing to report in this regard.

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ContentsAssembly Accountability and Audit Report

Opinion on other matters

In our opinion, based on the work undertaken in the course of the audit:

• the parts of the Accountability Report to be audited have been properly prepared in accordance

with Department of Finance directions made under the Government Resources and Accounts Act

(Northern Ireland) 2001; and

• the information given in the Performance Report and Accountability Report for the financial year

for which the financial statements are prepared is consistent with the financial statements.

Matters on which we report by exception

In the light of the knowledge and understanding of the Northern Ireland Audit Office and its

environment obtained in the course of the audit, we have not identified material misstatements

in the Performance Report and Accountability Report.

We have nothing to report in respect of the following matters which we report to you if,

in our opinion:

• adequate accounting records have not been kept; or

• the financial statements and the parts of the Accountability Report subject to audit are not in

agreement with the accounting records; or

• certain disclosures of remuneration specified by the Government Financial Reporting Manual

are not made; or

• we have not received all of the information and explanations we require for our audit; or

• the Governance Statement does not reflect compliance with the Department of Finance’s guidance.

Responsibilities of the Accounting Officer for the financial

statements

As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Accounting

Officer is responsible for:

• the preparation of the financial statements in accordance with the applicable financial reporting

framework and for being satisfied that they give a true and fair view;

• ensuring such internal controls as deemed necessary to enable the preparation of financial

statements to be free from material misstatement, whether due to fraud or error;

• ensuring the annual report, which includes the Remuneration and Staff Report, is prepared

in accordance with the applicable financial reporting framework; and

• assessing the Northern Ireland Audit Office’s ability to continue as a going concern, disclosing,

as applicable, matters related to going concern and using the going concern basis of accounting

unless the Accounting Officer either intends to liquidate the entity or to cease operations,

or has no realistic alternative but to do so.

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Assembly Accountability and Audit Report

Auditor’s responsibilities for the audit of the financial statements

Our responsibility is to audit, certify and report on the financial statements in accordance with the

Audit (Northern Ireland) Order 1987.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement

when it exists. Misstatements can arise from fraud or error and are considered material if, individually

or in the aggregate, they could reasonably be expected to influence the economic decisions of users

taken on the basis of these financial statements.

We design procedures in line with our responsibilities, outlined above, to detect material

misstatements in respect of non-compliance with laws and regulation, including fraud.

Our procedures included:

• obtaining an understanding of the legal and regulatory framework applicable to the Northern Ireland

Audit Office through discussions with management and from our wider knowledge and experience;

• making enquires of management and those charged with governance on Northern Ireland Audit

Office’s compliance with laws and regulations;

• making enquiries of internal audit, management and those charged with governance as to

susceptibility to irregularity and fraud, their assessment of the risk of material misstatement due to

fraud and irregularity, and their knowledge of actual, suspected and alleged fraud and irregularity;

• completing risk assessment procedures to assess the susceptibility of Northern Ireland Audit Office’s

financial statements to material misstatement, including how fraud might occur. This included, but

was not limited to, an engagement partner led team discussion on fraud to identify particular areas,

transaction streams and business practices that may be susceptible to material misstatement due

to fraud. As part of this discussion, we identified potential for fraud in the following areas: revenue

recognition, expenditure recognition and posting of unusual journals;

• engagement partner oversight to ensure the engagement team collectively had the appropriate

competence, capabilities and skills to identify or recognise non-compliance with the applicable legal

and regulatory framework throughout the audit;

• designing audit procedures to address specific laws and regulations which the engagement team

considered to have a direct material effect on the financial statements in terms of misstatement and

irregularity, including fraud. These audit procedures included, but were not limited to, reading board

and committee minutes, and agreeing financial statement disclosures to underlying supporting

documentation and approvals as appropriate;

• addressing the risk of fraud as a result of management override of controls by:

• performing analytical procedures to identify unusual or unexpected relationships or

movements;

• testing journal entries to identify potential anomalies, and inappropriate or unauthorised

adjustments;

• assessing whether judgements and other assumptions made in determining accounting

estimates were indicative of potential bias; and

• investigating significant or unusual transactions made outside of the normal course of business.

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ContentsAssembly Accountability and Audit Report

Owing to the inherent limitations of an audit, there is a risk that we will not detect all irregularities,

including those leading to a material misstatement in the financial statements or non-compliance

with regulation. This risk increases the more that compliance with a law or regulation is removed from

the events and transactions reflected in the financial statements, as we will be less likely to become

aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due

to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or

misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located

on the Financial Reporting Council’s website. This description forms part of our auditor’s report.

In addition, we are required to obtain evidence sufficient to give reasonable assurance that the

Statement of Outturn against Assembly Supply properly presents the outturn against voted Assembly

control totals and that those totals have not been exceeded. The voted Assembly control totals are

Departmental Expenditure Limits (Resource and Capital), Annually Managed Expenditure (Resource

and Capital), Non-Budget and Net Cash Requirement. We are also required to obtain evidence

sufficient to give reasonable assurance that the expenditure and income recorded in the financial

statements have been applied to the purposes intended by Assembly and the financial transactions

recorded in the financial statements conform to the authorities which govern them.

Use of our report

This report is made solely to the Northern Ireland Assembly, as a body, in accordance with the Audit

(Northern Ireland) Order 1987. Our audit work has been undertaken so that we might state to the

Northern Ireland Assembly those matters we are required to state to them in an auditors’ report and

for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility

to anyone other than the Northern Ireland Assembly as a body, for our audit work, for this report,

or for the opinions we have formed.

Sean G. Cavanagh (Senior Statutory Auditor)

SCC Chartered Accountants

Statutory Auditors

17 College Street

Armagh

Bt61 9Bt

1 July 2025

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Financial

StatementsFinancial Statements

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ContentsFinancial Statements

Statement of Comprehensive Net Expenditure

for the year ended 31 March 2025

This account summarises the expenditure and income generated and consumed on an accruals’

basis. It also includes other comprehensive income and expenditure, which include changes to

the values of non-current assets and other financial instruments that cannot yet be recognised

as income or expenditure.

2024-25 2023-24

Note £’000 £’000 £’000 £’000

Total Operating Income 4 (3,137) (3,048)

Staff Costs 3 8,840 8,066

Purchase of Goods and Services 3 3,453 3,236

Depreciation and impairment

charges3 181 255

Total Operating Expenditure 12,474 11,557

Net Operating Expenditure SOAS1.1 9,337 8,509

Other Comprehensive Net Ex -

penditure

Items that will not be reclassified

to net operating expenditure:

– Net (gain) on revaluation of

Property, Plant and Equipment5/6 (185) (96)

Comprehensive Net Expenditure

for the year9,152 8,413

The notes on pages 108 to 122 form part of these accounts.

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Financial Statements

Statement of Financial Position as at 31 March 2025

This statement presents the financial position of the Office. It comprises three main components: assets

owned or controlled; liabilities owed to other bodies; and equity, the remaining value of the entity.

31 March 2025 31 March 2024

Note £’000 £’000 £’000 £’000

Non-current Assets

Property, Plant and Equipment 5 5,266 5,272

Investment Property 6 950 940

Total non-current assets 6,216 6,212

Current Assets

Trade and other receivables 7 1,068 1,057

Cash and cash equivalents 8 278 257

Total current assets 1,346 1,314

Total Assets 7,562 7,526

Current liabilities

Trade and other payables 9 (980) (1,032)

Total current liabilities (980) (1,032)

Total assets less total liabilities 6,582 6,494

Taxpayers’ equity and other

reserves:

General Fund 6,374 6,310

Revaluation Reserve 208 184

Total equity 6,582 6,494

The notes on pages 108 to 122 form part of these accounts.

Dorinnia Carville

Comptroller and Auditor

General for Northern Ireland

30 June 2025

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ContentsFinancial Statements

Statement of Cash Flows for the year ended 31 March 2025

The Statement of Cash Flows shows the changes in cash and cash equivalents of the Office during the

reporting period. The statement shows how the Office generates and uses cash and cash equivalents by

classifying cash flows as operating, investing and financing activities. The amount of net cashflows arising

from operating activities is a key indicator of services costs and the extent to which these operations

are funded by way of income from the recipients of services provided by the Office. Investing activities

represent the extent to which cash inflows and outflows have been made for resources which are

intended to contribute to the Office’s future public service delivery.

Note2024-25

£’0002023-24

£’000

Cashflows from operating activities

Net expenditure for the year (9,337) (8,509)

Adjustment for non-cash transactions 3 181 255

(Increase) / Decrease in trade and other receivables 7 (11) (26)

(Decrease) / Increase in trade and other payables 9 (52) (100)

less movements in payables relating to items not passing

through the Statement of Comprehensive Net Expenditure(21) 150

Net cash outflow from operating activities (9,240) (8,230)

Cash flows from investing activities

Purchase of Property, Plant and Equipment 5,6 - (85)

Purchase of intangible assets - -

Net cash outflow from investing activities - (85)

Cash flows from financing activities

From the Consolidated Fund (Supply) – current year 8,995 8,010

Consolidated Fund Standing Services 3 266 227

Net financing 9,261 8,237

Net (decrease) / increase in cash and cash equivalents

in the period before adjustment for receipts and payments

to the Consolidated Fund21 (78)

Payments of amounts due to the Consolidated Fund - -

Net (decrease) / increase in cash and cash equivalents

in the period after adjustment for receipts and payments

to the Consolidated Fund21 (78)

Cash and cash equivalents at the beginning of the period 257 335

Cash and cash equivalents at the end of the period 278 257

The notes on pages 108 to 122 form part of these accounts.

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Financial Statements

Statement of Changes in Taxpayers’ Equity for the year

ended 31 March 2025

This statement shows the movement in the year on the different reserves held by the Office analysed

into ’general fund reserves’ (i.e. those reserves that reflect a contribution from the Consolidated Fund).

The Revaluation Reserve reflects the change in asset values that have not been recognised as income

or expenditure. The General Fund represents the total assets less liabilities of the Office, to the extent

that the total is not represented by other reserves and financing items.

NoteGeneral

Fund

£’000Revaluation

Reserve

£’000Taxpayers’

Equity

£’000

Balance at 31 March 2023 6,328 234 6,562

Net Assembly Funding 8,345 - 8,345

Consolidated Fund Standing Services 3 227 - 227

Consolidated Fund Standing Services Adjustment 3 30 - 30

Supply payable adjustment 9 (257) - (257)

Comprehensive Net Expenditure for the year (8,509) 96 (8,413)

Other reserves movements including transfers 146 (146) -

Balance at 31 March 2024 6,310 184 6,494

Net Assembly Funding 9,252 - 9,252

Consolidated Fund Standing Services 3 228 - 228

Consolidated Fund Standing Services Adjustment 3 38 - 38

Supply payable adjustment 9 (278) - (278)

Comprehensive Net Expenditure for the year (9,337) 185 (9,152)

Other reserves movements including transfers 161 (161) -

Balance at 31 March 2025 6,374 208 6,582

The notes on pages 108 to 122 form part of these accounts.

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ContentsFinancial Statements

1. Notes to the Resource Accounts

Accounting policies, key accounting estimates and judgements

1.1 Statement of Accounting Policies

Article 6 of the Audit (Northern Ireland) Order 1987, as amended by the Government Resources and

Accounts Act (Northern Ireland) 2001, requires the NIAO to prepare resource accounts.

These financial statements have been prepared in accordance with the 2024-25 Government Financial

Reporting Manual (FReM) issued by the Department of Finance. The accounting policies contained

in the FReM apply International Financial Reporting Standards (IFRS) as adapted or interpreted for

the public sector context. Where the FReM permits a choice of accounting policy, the accounting

policy which is judged to be most appropriate to the circumstances of the NIAO for the purpose of

giving a true and fair view has been selected. The policies adopted by the NIAO are described below.

They have been applied consistently in dealing with items that are considered material to the accounts.

1.2 Basis of preparation

These accounts have been prepared under the historical cost convention, modified to account for the

revaluation of investment property, plant and equipment and intangible assets. Figures are presented in

pounds sterling and are rounded to the nearest £1,000. Transactions in foreign currencies are translated

into sterling at the exchange rate at the date of the transaction.

1.3 Reporting standards issued but not yet effective

The Office has reviewed new accounting standards that have been issued but are not yet effective,

nor adopted early for these accounts.

IFRS 17 Insurance Contracts

IFRS 17: Insurance Contracts replaces IFRS 4: Insurance Contracts and is to be included in the FReM

for mandatory implementation from 2025-26. It establishes the principles for the recognition,

measurement, presentation and disclosure of insurance contracts within the scope of this Standard.

IFRS 17 requires insurance contracts, including reinsurance contracts, to be recognised on the statement

of financial position as the total of the fulfilment cashflows and the contractual service margin (CSM).

The fulfilment cashflows consist of the present value of future cash flows calculated using best estimate

assumptions with an explicit risk adjustment for non-financial risk.

The risk adjustment is released to the SoCNE as risk expires. The CSM is the unearned profit on

insurance contracts and is released to the SoCNE over the insurance contract period as insurance

services are provided. Where an insurance contract is onerous, it will have no CSM and the onerous

element of the insurance contract will be recognised immediately in the SoCNE.

We do not consider there to be any impact of the initial applications of IFRS 17 on the NIAO’s

financial statements.

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Financial Statements

IFRS 18 Presentation and Disclosure in Financial Statements

IFRS 18: Presentation and Disclosure in Financial Statements will replace IAS 1 Presentation of Financial

Statements and is effective for annual reporting periods beginning on or after the 1 January 2027 in

the private sector. The Public Sector implementation date is not yet confirmed. The impact of IFRS 18

on the Public Sector is still being assessed.

Non-investment asset valuations

In December 2023 Treasury released an exposure draft on potential changes to make to valuing

and accounting for non-investment assets (e.g. PPE, intangible assets). The following changes to

the valuation and accounting of non-investment assets is to be included in the 2025-26 FReM

for mandatory implementation:

References to assets being held for their ‘service potential’ and the terms ‘specialised/ non-specialised’

assets are being removed from the FReM. Non-investment assets are instead described as assets held

for their ‘operational capacity’. This change has no impact on the valuation basis of non-investment

assets, which remains Existing Use Value (EUV).

An adaptation to IAS 16 will be introduced to withdraw the requirement to revalue an asset where its

fair value materially differs from its carrying value. Assets are now valued using one of the following

processes:

• A quinquennial revaluation supplemented by annual indexation.

• A rolling programme of valuations over a 5-year cycle, with annual indexation applied to assets

during the 4 intervening years.

• For non-property assets only, appropriate indices.

• In rare circumstances where an index is not available, a quinquennial revaluation supplemented

by a desktop revaluation in year 3.

The option to measure intangible assets using the revaluation model is withdrawn. The carrying

values of intangible assets at 31 March 2025 will be considered the historical cost at 1 April 2025.

Accounting policies for assets and liabilities

1.4 Property, plant and equipment

Land and buildings have been included based on professional valuations performed by Land &

Property Services (LPS). The valuation provided by LPS as at 31 March 2025 is current value in existing

use for the land and buildings held for use by the NIAO, with the building valued on the basis of fitted

out accommodation rather than solely as the shell of the building.

Information technology and furniture have been restated using valuation indices produced by the

Office for National Statistics.

The minimum level for capitalisation of property, plant and equipment is £5,000. All non-property

operational assets are stated at fair value based on their existing use.

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ContentsFinancial Statements

1.5 Investment property

Investment property refers to the element of the NIAO building, not occupied by the NIAO and held

to earn rental income. It was measured initially at cost, including related transaction costs. After initial

recognition, the investment property is held at fair value based on a valuation by LPS at each reporting

date.

1.6 Work in progress

Work in progress relates to a proportion of audit fees that have been earned by the end of the financial

year but where a fee has not yet been issued. The calculation is based on the amount of audit work

completed by the end of the financial year as a proportion of the total expected amount of audit work,

less any foreseen losses and payments received on account.

Accounting policies for income and expenditure

1.7 Revenue from contracts with clients

Income principally comprises fees and charges for services provided by statute or by agreement with

the National Audit Office (NAO) and client organisations. This income represents the amounts derived

from the provision of completed work for clients during the year and includes an appropriate allowance

for work in progress on assignments which will be completed in the following year. Further details of the

NIAO’s application of IFRS 15 to audit assignments are set out in Note 4.

1.8 Rental income

The NIAO rents parts of its office to a third party at a commercial rate. The rental contract is classified as

an operating lease and rental income is recognised as it falls due. Any financial incentives offered, such as

rent-free periods, are accounted for separately and apportioned across the lease. Rental income includes

a service charge levied on an accruals basis to recover central costs borne by the NIAO.

1.9 Value Added Tax (VAT)

The NIAO does not charge VAT for any work it carries out under statute. The NIAO can recover VAT at

a partial exemption rate. For 2024-25 this was at a rate of 1 per cent (2023-24: 5 per cent), based on the

percentage of business income over total income. Income and expenditure in the account is stated

exclusive of irrecoverable VAT.

1.10 Staff costs

Staff costs include wages and salaries, social security costs and pension costs. Under IAS 19 Employee

Benefits, all staff costs must be recorded as an expense as soon as the organisation is obligated to pay

them. This includes the cost of any untaken leave as at the year end.

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Financial Statements

1.11 Pensions

Past and present employees of the NIAO are covered by the provisions of the Principal Civil Service

Pension Scheme (Northern Ireland) (PCSPS (NI)). The defined benefit scheme is unfunded. The Office

recognises the expected cost of these elements on a systematic and rational basis over the period during

which it benefits from the employees’ services by a payment to the PCSPS (NI) of amounts calculated

on an accruing basis. Liability for payment of future benefits is a charge on the PCSPS (NI). In respect

of defined contribution schemes, the Office recognises the contribution payable for the year.

1.12 Depreciation

Depreciation is provided at rates calculated to write off the valuation of property, plant and equipment

by equal instalments over their estimated useful lives. Asset lives are normally in the following ranges:

Information Technology 3 to 7 years

Furniture 5 to 20 years

The building is depreciated over a 30 year estimated useful life. Land and the Investment property

are not depreciated.

Where events have arisen which reduce the recoverable amount of any non-current asset below

its carrying amount, an impairment loss is recognised.

Accounting estimates and judgements

1.13 Contract assets (WIP) – management estimate

To calculate the income to be recognised in respect of audit services, the NIAO estimates the stage

of completion of each audit so that income can be recognised progressively as services are provided.

The stage of completion is determined with reference to the proportion of total budgeted costs which

have been incurred at the reporting date. This percentage completion rate is then applied to the audit

fees to allocate income to the reporting period, less any provision required for unrecoverable amounts.

Further information is provided in Note 4 to the financial statements.

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ContentsFinancial Statements

2. Statement of Operating Expenditure by Operating Segment

The NIAO’s operating segments reflect the activities undertaken to achieve the business objectives.

2024-25 2023-24

Gross

Expenditure

£’000Income

£’000Net

Expenditure

£’000Gross

Expenditure

£’000Income

£’000Net

Expenditure

£’000

Financial Audit 8,845 2,776 6,069 8,393 2,865 5,528

Public

Reporting2,768 209 2,559 2,262 183 2,079

Governance

and Fraud

Prevention

and Detection514 - 514 608 - 608

Support to the

NI Assembly,

other public

bodies and

citizens327 - 327 277 - 277

Comptroller

Function20 - 20 17 - 17

Total 12,474 2,985 9,489 11,557 3,048 8,509

Financial Audit – Forming an opinion on financial statements; assessing whether expenditure is regular

and in accordance with the intentions of the Assembly when it granted the money; and providing

assurance on the Accounting Officer’s Governance Statement.

Public Reporting – Independently examining and reporting to the Northern Ireland Assembly on whether

public bodies spend taxpayers’ money economically, efficiently and effectively. Audit, assessment and

reporting on local councils’ performance improvement responsibilities. Providing public bodies with

constructive advice in the form of good practice reports across a range of areas.

Governance and Fraud Prevention and Detection – Helping public bodies improve their corporate

governance, financial control and risk management arrangements, and assisting in the prevention and

detection of fraud by conducting and reporting on data matching exercises.

Support to the Northern Ireland Assembly, other public bodies and citizens – Working closely with the

Public Accounts Committee on evidence sessions based on the NIAO’s reports; providing support to

departmental committees; responding to enquiries from elected representatives as well as citizens;

seconding staff to other public bodies; and providing office space to other public bodies.

Comptroller Function – Authorising the issue of public funds from the Consolidated Fund for Northern

Ireland.

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Financial Statements

3. Expenditure

Note2024-25 2023-24

£’000 £’000 £’000 £’000

Staff Costs3:

Wages and Salaries 6,141 5,644

Social Security Costs 680 621

Other Pension Costs 2,019 1,801

8,840 8,066

Contracted Out Audits 1,598 1,497

IT Support Services 416 441

Accommodation 402 342

Recruitment and training 191 240

Consolidated Fund Standing Services

(C&AG’s costs)266 257

National Fraud Initiative Charge 136 -

Professional Services Bought In 196 128

Other Indirect Costs 114 149

Office Supplies/Equipment 42 62

Legal Fees 28 50

Travel and Subsistence 23 27

Internal Auditor’s Fees 15 15

External Auditor’s Fees - Audit 21 22

Hospitality 5 6

3,453 3,236

Non-cash items

Depreciation 5 181 184

Impairment of non-current assets 5 - 43

Reclassification of non-current assets 5 - 28

181 255

Total 12,474 11,557

3 Further analysis of staff costs is located in the Staff Report on page 88.

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ContentsFinancial Statements

4. Operating Income

In line with its accounting policy, the NIAO has applied the requirements of IFRS 15 to income earned

from fee-paying audits falling within the scope of IFRS 15.

Identification of a contract

The basis of the different streams of audit work are set out below:Item2024-25

£’0002023-24

£’000

Income from NAO 149 461

Other Audit Fees 2,836 2,587

Nfi 148 -

Rental Income 4 -

Total 3,137 3,048

Audit income

stream Basis for identifying a contractPerformance

obligation

Statutory AuditFor these audits, we are appointed auditors under

statute, and we charge a fee directly to the body.

For audits under the Government Resources and

Accounts Act NI 2001 the client recognises a notional

fee, and no income is recognised in the NIAO accounts.Issue a Certificate

and Report of

the C&AG to the

Northern Ireland

Assembly.

Agreement AuditThere is no legal contract with fee-paying statutory

audit clients but a contract is deemed to be in place, in

accordance with the FReM adaptation of IFRS 15 where the

definition of a contract is expanded to include legislation

and regulations enabling an entity to receive income.

The contract is deemed to be as set out in the Letter of

Understanding between the NIAO and the audited body.Issue a Certificate

and Report of

the C&AG to the

Northern Ireland

Assembly.

Companies Act

AuditFor these audits, we are appointed auditors by the

organisation’s board under their own governance

arrangements and have a contract with them in the

form of a Letter of Engagement.Issue a Certificate

and Report of

the C&AG to the

Northern Ireland

Assembly.

National Audit

Office subcontract

servicesFor these audits, we are appointed auditors under

the Companies (Public Sector Audit) Order 2013

and therefore have a contract with them in the

form of a Letter of Understanding.Issue a report

or advice as per

the terms of the

engagement.

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Financial Statements

Identification of performance obligations

The NIAO has determined that there is a single performance obligation for each engagement which is

identified as the objective of these assignments in the Letter of Understanding or Letter of Engagement,

or contract for services provided to the National Audit Office. In the case of audits, other outputs, such as

interim reports and reports to those charged with governance of the audited body, are produced during

audit assignments, but these other outputs are integral to the audit opinion; they are highly interrelated

with the delivery of the audit certificate or report, so do not qualify as distinct performance obligations.

Determination of when performance obligations are satisfied

The NIAO has determined that the performance obligations described above are satisfied over time

rather than at a point in time. This is because the NIAO’s performance of the engagement does not

create an asset with an alternative use to the NIAO and the NIAO has an enforceable right to payment

for performance completed to date.

The majority of the NIAO’s financial audits are on an annual cycle. The fee (which is based on estimated

costs to the NIAO) and invoicing schedule is agreed between the individual assignment teams and the

client. The NIAO is entitled to recover costs in respect of work completed to date at any stage of the

audit.

The NIAO’s payment terms are that audit fee invoices should be paid within 30 days. Contracts for audit

services do not have a significant financing component and the consideration amount is not variable

except in respect of fee increases where it has become necessary to perform additional work.

Allocation of transaction price to performance obligations

Income is recognised as the services are provided, determined by reference to the proportion of

budgeted costs that have been spent to date for each engagement, less a provision for any unrecoverable

amounts. This provides a faithful depiction of the transfer of services because the nature of work is that

the staff costs incurred represent progress towards satisfaction of the performance obligation. There is

a direct relationship between these inputs and the transfer of services to the audit client.

Recognition of contract assets and liabilities

The contract asset (work in progress) is recorded in Note 7. Payments received in advance of performance

under the contract are recognised as a contract liability (payments on account). This is then recognised

as revenue as the NIAO performs its work.

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ContentsFinancial Statements

5. Property, Plant and Equipment

2024-25

Land

£’000Buildings

£’000Information

Technology

£’000Furniture and

Fittings

£’000Total

£’000

Cost or Valuation

At 1 April 2024 400 4,500 66 366 5,332

Additions - - - - -

Reclassifications - - - - -

Disposals - - (3) - (3)

Impairment - - - - -

Revaluations - - - 23 23

At 31 March 2025 400 4,500 63 389 5,352

Depreciation

At 1 April 2024 - - 20 40 60

Reclassification - - - - -

Charged in year - 155 10 16 181

Disposals - - (3) - (3)

Revaluations (155) 3 (152)

At 31 March 2025 0 0 27 59 86

Carrying amount at

31 March 2024400 4,500 46 326 5,272

Carrying amount at

31 March 2025400 4,500 36 330 5,266

All assets at 31 March 2025 are owned by the NIAO.

Details of the basis of valuation can be found in Note 1.4 to the Accounts.

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5. Property, Plant and Equipment cont’d

2023-24

Land

£’000Buildings

£’000Information

Technology

£’000Furniture and

Fittings

£’000Total

£’000

Cost or Valuation

At 1 April 2023 400 4,500 72 387 5,359

Additions - 43 - - 43

Reclassifications - - - (32) (32)

Disposals - - (6) - (6)

Impairment - (43) - - (43)

Revaluations - - - 11 11

At 31 March 2024 400 4,500 66 366 5,332

Depreciation

At 1 April 2024 - - 17 21 38

Reclassification - - - (4) (4)

Charged in year - 146 9 22 177

Disposals - - (6) - (6)

Revaluations - (146) - 1 (145)

At 31 March 2024 0 0 20 40 60

Carrying amount at

31 March 2023400 4,500 55 366 5,321

Carrying amount at

31 March 2024400 4,500 46 326 5,272

All assets at 31 March 2024 were owned by the NIAO.

Details of the basis of valuation can be found in Note 1.4 to the Accounts.

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6. Investment Property

2024-25

Investment Property

£’000

Cost or Valuation

At 1 April 2024 940

Additions -

Disposals -

Revaluations 10

At 31 March 2025 950

Depreciation

At 1 April 2024 -

Charged in year -

Disposals -

Revaluations -

At 31 March 2025 -

Carrying amount at 31 March 2024 940

Carrying amount at 31 March 2025 950

All assets at 31 March 2025 are owned by the NIAO.

Details of the basis of valuation can be found in Note 1.4 to the Accounts.

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6. Investment Property cont’d

2023-24

Investment Property

£’000

Cost or Valuation

At 1 April 2023 1,000

Additions -

Disposals -

Revaluations (60)

At 31 March 2024 940

Depreciation

At 1 April 2023 -

Charged in year -

Disposals -

Revaluations -

At 31 March 2024 -

Carrying amount at 31 March 2023 1,000

Carrying amount at 31 March 2024 940

All assets at 31 March 2025 are owned by the NIAO.

Details of the basis of valuation can be found in Note 1.4 to the Accounts.

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7. Trade and other receivables

8. Cash and cash equivalents2024-25

£’0002023-24

£’000

Amounts receivable within one year

Trade receivables 53 196

Work in progress 842 684

Rent receivable 4 -

Consolidated Funding Services non-supply adj 38 30

Prepayments 131 147

Total 1,068 1,057

2024-25

£’0002023-24

£’000

Balance at 1 April 257 335

Net change in cash and cash equivalent balances 21 (78)

Balance 31 March* 278 257There are no amounts receivable after more than one year.

*The above balance is held at a commercial bank within the NI Banking Pool.

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9. Trade and other payables

2024-25

£’0002023-24

£’000

Amounts falling due within one year

Vat 5 86

Trade payables 69 37

Consolidated Funding Services non-supply adj 38 30

Accruals 272 334

Employee benefits accrual 262 232

Total excluding amounts due to the Consolidated

Fund646 719

Amounts issued from the Consolidated Fund for

supply but not spent at the year end278 257

Sub Total 924 976

Other payables: capital creditor 56 56

Total 980 1,032

There are no amounts falling due after more than one year.

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10. Contingent Liabilities

The Office has not entered any guarantees or indemnities or provided any letters of comfort.

Public Sector Pensions – Injury to Feelings Claims

The Department of Finance is a named Respondent in a class action affecting employers across the

public sector and is managing claims on behalf of the Northern Ireland Civil Service (NICS) departments.

This is an extremely complex case with potential implications for the NICS and wider public sector.

However, given these complexities, the cases are still at an early stage of proceedings and until there

is further clarity on potential scope and impact, a reliable estimate of liability cannot be provided.

11. Related Party Transactions

None of the NIAO Advisory Board, Audit and Risk Assurance Committee, Senior Leadership Team

members or other related parties has undertaken any material transactions with the NIAO during

the year.

The NIAO has had a number of transactions with the Department of Finance.

12. Events after the reporting period

There were no reportable events between the end of the reporting period and the date the accounts

were signed.

Date of authorisation for issue

The C&AG authorised the issue of these financial statements on 1 July 2025.

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