Northern Ireland’s Comptroller and Auditor General (C&AG) has today (Tuesday 09 December) published a report summarising the key findings and issues arising from her audits in the year to 31 August 2025.
Dorinnia Carville’s report discusses the results of audit work on 122 central government accounts. These mostly relate to accounts for the year 2024-25, but the report also includes the outcomes of 13 audits from previous accounting periods.
The report outlines qualified audit opinions on the accounts of 15 central government departments or their arms-length bodies (a reduction from 18 in the previous reporting period). It also notes a disclaimed opinion on the 2023-24 accounts of the Department for the Economy, previously highlighted in March 2025.
Among the issues highlighted by the C&AG is the use of direct award contracts (DACs), and in particular increasing expenditure via DACs in the health sector. DACs are public contracts awarded without a competitive process. Today’s report notes a significant value (£329 million) and number (588) of these contracts during 2024-25. Across Northern Ireland’s health trusts, the total value of DACs has increased by 20 per cent from the previous reporting period. While acknowledging there can be valid reasons for DACs, the report also highlights the need for effective planning and contract management to ensure their use is applied appropriately.
The report also comments on the value and number of special payments i.e. payments made outside the normal range of departmental activity. In 2024-25 special payments totalled £94.5m (compared with £72 million in the previous year). The majority of these payments were made by the Department of Health (mostly in relation to clinical negligence payments) and the Department of Justice (most of these relating to compensation payments to victims of crime). Today’s report recommends that those charged with governance establish any trends or lessons arising from this
increased expenditure, and ensure additional controls or procedures are implemented as necessary.
The issue of fraud and error in benefit expenditure continues to result in a qualification on the Department for the Communities accounts. The level of this fraud and error overpayment has increased from £240 million in 2023-24 to £350 million in 2024-25. Today’s report notes that this increase is due to inflationary rises in benefit rates and a growing Universal Credit caseload as claimants are migrated from legacy benefit systems. The C&AG has stated that the issue remains under consideration and has recommended that the Department seeks to learn from the Department of Work and Pensions, which has made some progress in curbing the rise of benefit fraud and error.
Commenting on the report’s overall findings, Dorinnia Carville said:
“In the current, challenging financial environment, clear and transparent accounting of public spending is essential. I am pleased, therefore, that this report acknowledges most accounts in the period covered were unqualified, and I welcome the reduction in the number of qualified audit opinions from last year. However, it is very concerning that I had to take the unusual step of disclaiming my opinions on the Department for Economy account due to a lack of sufficient, relevant and reliable audit evidence.
Today’s report also highlights several concerns I have in internal controls and the quality of some accounts and supporting evidence. A number of recommendations have been included, some addressing specific issues in particular departments or organisations, but many have relevance across central government.
Those charged with governance in the public sector should use these insights to reflect on their own procedures and arrangements, and to identify potential improvements as necessary. This will aid future planning and decision making, and give the public and the Assembly increased assurance that spending is appropriate and represents value for money.”
ENDS
