Northern Ireland Audit Office - Annual Report and Accounts 2025 - 2026

Independence and excellence in audit to improve public services

The Northern Ireland Audit Office's vision is to provide independence and excellence in audit to improve public services.

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.

Northern Ireland Audit Office Annual Report and Accounts

For the year ended 31 March 2026

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. 
1 July 2026

Summary of the year

147 accounts certified

93% of NIAO recommendations accepted by audited bodies

96% of respondents to our survey of audited bodies agreed or strongly agreed that the NIAO’s work leads to improvement in public services

24 reports and good practice guides published

Accredited by DiversityMark and Investors in People

84% of surveyed MLAs said they had a favourable opinion of the NIAO

Performance Report

Overview

Chairperson's Foreword

As Chair of the Advisory Board I am pleased to present the Annual Report and Accounts for the year ending 31 March 2026. The Advisory Board exists to support the Comptroller and Auditor General (C&AG) by providing objective and impartial advice and works to assist her in the discharge of her functions whilst recognising the status of the Board as being Advisory. This year marked the beginning of a completely new Board and it has quickly become effective in carrying out its purpose. As Chair, I greatly welcomed the fresh perspectives and insights my fellow Non-Executive Directors have brought to the Board, and I would like to sincerely thank them for their input, time and effort.

As Chair of the Advisory Board, I am proud to be part of an organisation that continues to play such an important role in providing independence and excellence in audit to improve public services. We work to ensure public money is spent properly through the activities we undertake. Our 130 staff members work closely with the public bodies we audit to understand the challenges they face and assist them to make improvements in public services. We do this in several ways. The financial audits we undertake of around 150 public bodies seek to ensure that the public money allocated is spent properly. Our public reporting seeks to ensure that when public funds are being used there is evidence that they have been used efficiently and effectively. This work is of great value to the Northern Ireland Assembly, particularly the Public Accounts Committee as it scrutinises public spending based on the reports we produce.

Our work on promoting good practice in governance arrangements to help combat fraud is about ensuring money is spent in line with the purpose for which it was allocated. We are delighted to see the value of the work that goes into our good practice guides being recognised by the number of downloads from our website. The good practice guides are invaluable in assisting with our strategic objective and commitment to help improve public services. I am greatly encouraged by the results of our annual survey of audited bodies which show these guides continue to be highly valued by those working across the public sector.

We could not undertake such important work and achieve the quality that is required unless our people perform in line with our vision, purpose and values. Our third strategic objective of being a high-performing people-focused organisation recognises that we need to invest in our people. We do this in a number of ways. Our Learning and Development strategy identifies not only the professional learning and development that is needed to ensure technical skills are at a high level, but that management and leadership skills are also essential to meeting our objectives.

Our People Strategy likewise outlines the actions needed to ensure our staff meet the challenges of their role and assist in both attracting and retaining the high calibre staff we need. This is particularly important as we grow and further develop the organisation.

The Board have been delighted to see improvements in our recruitment and retention figures and continue to work toward retaining and indeed improving on our IIP accreditation. We will continue to transform the way we work by embracing technology and have already started to embrace the opportunities offered by artificial intelligence, with a new dedicated AI group looking at its further potential. These efforts contribute to our organisational development agenda and continuous improvement approach. As an organisation we are mindful of our obligation to limit as far as possible our impact on the environment and to make our contribution to achievement of climate change targets.

The Advisory Board will continue to support the NIAO in the achievement of its strategic objectives. I would like to thank the C&AG for the value she puts on the contribution of the Board. We are able to freely give our views, supporting and challenging where appropriate. My thanks as well to the Chief Operating Officer (COO), Directors who attend the Board periodically and indeed other staff who have attended to present on particular items. Whilst recognising the Board operates in the strategic space, we have been encouraged to engage with staff at all levels in different ways. I know I speak for all of my fellow Non-Executive Directors in noting that we greatly welcome these opportunities to gain a deeper and more personal understanding of the people and work of the Office.

Finally, I wish to offer my warm congratulations to Dorinnia and all her staff for another successful year - their work truly makes a difference.

Marie Mallon OBE
Chair, NIAO Advisory Board
 

30 June 2026

Comptroller and Auditor General’s Statement

The Northern Ireland Audit Office's (NIAO) Annual Report and Accounts for the year 2025-26 reflects a wide range of notable accomplishments and milestones from my Office, over what has been a busy and highly productive 12 months. In a period when the public sector in Northern Ireland has faced growing demands and ongoing financial challenges, our work to provide independent assurance and promote improvement in services remains consistent and vitally important.

Financial audit remains at the core of what we do. The 147 accounts certified across central and local government bodies this year reflect both the diligence and commitment from NIAO staff, as well as the professional and productive relationships we continue to maintain with our audited bodies. This work provides crucial assurance on the stewardship of public funds, and I am greatly encouraged by the responses to our annual survey of audited organisations which show a vast majority of respondents (98 per cent) believe that our audit staff provided a high-quality and professional service. At the same time, we recognise the importance of ensuring we continue to deliver a high-quality audit function, and there remains scope to develop and enhance the quality of our audit work. As a result, we have further invested in our systems, methodologies and people, to ensure compliance with professional standards and support continuous improvement.

Our public reporting programme also continues to be a key means through which we add value and promote accountability for the delivery of public services. During 2025'26, we published 24 reports, spanning themes as wide-ranging as Waste Crime, Major IT Projects, and Active Travel. This work remains topical, well-profiled and highly valuable, with over 90 per cent of recommendations made across reports this year being accepted by audited bodies. In addition, we published our latest good practice guide, on Raising Concerns, aimed at supporting organisations across central and local government to develop a culture and environment where raising concerns is encouraged, welcomed and managed effectively.

These guides, and our wider public reporting programme, reflect our determination to both promote improvement in public service delivery and to highlight, acknowledge and learn from public bodies which are already demonstrating good practice.

We continue to play an important role in supporting the Northern Ireland Assembly, particularly through our close working relationship with the Public Accounts Committee. The Committee has had a similarly productive year, holding a total of eight inquiries based on our reports. MLAs have also expressed an interest in tracking and revisiting its past recommendations to help ensure greater accountability and maximise impact. I have also welcomed the opportunity to assist and engage with other Assembly committees over the last 12 months. We continue to work closely with the NI Assembly's Audit Committee in agreeing the NIAO budget and scrutinising our performance. Increased interest in the Office's output has also seen other committees, such as the Infrastructure and Finance Committees, seeking briefings and conducting inquiries based on our reports. This, along with the findings of our independent survey of MLAs, demonstrates the continued high esteem in which the NIAO is held by elected officials. We look forward to continuing to work with MLAs and Committees for the remainder of the mandate.

Collaboration more widely remains a cornerstone of our approach. During the year, we continued to work closely with key external partners including Chartered Accountants Ireland, the Business Fraud Alliance, and our colleagues across the UK and Ireland audit offices. These relationships enable the sharing of knowledge, expertise and good practice. Similarly, we were pleased to welcome a range of speakers from across the public, private and third sectors to participate in our ongoing Insight Exchange series. My Office also continues to participate and be represented at a range of external conferences and other events.

As an organisation, we recognise the need to remain outward-looking, curious to learn from the insights and experiences of others, and willing to share our own expertise widely. This last year has seen some notable changes in leadership and responsibilities within the Office. Our colleague Colette Kane retired in December, after over 30 years with the NIAO. I was delighted to see Colette's accomplishments and contribution to public sector audit recognised in the 2026 King's New Year Honours, where she was awarded an OBE. On behalf of everyone in the Office, we wish her all the best for the future. Succeeding Colette as Local Government Auditor (LGA) is NIAO Director Brian O'Neill and I would like to congratulate Brian on taking on this vital role with significant responsibility that strengthens our oversight of local councils. With a new LGA, and a newly updated Code of Audit Practice, this has been a significant year for Local Government audit, and I wish Brian every success moving forward. I would also like to recognise the contribution of Rodney Allen, our Chief Operating Officer, who celebrated 40 years in public service in October, a major milestone reflecting his outstanding dedication and commitment.

Our people remain at the heart of everything we do. I am delighted that, after sustained effort in the delivery of our People Strategy, the Office has reached our full staff complement for our current operating model, with many colleagues having been successful in gaining promotion following open recruitment activities. This is a testament to their hard work and professionalism, and also our continued investment in staff development and learning. We have made important progress in promoting a positive and inclusive workplace. During the year, we launched our Equality, Diversity and Inclusion (EDI) Strategy, reinforcing our efforts to create an environment where all staff feel valued and supported. This has been recognised by independent accreditation and the awarding of the Diversity Mark, as well as our continued achievement of Investors in People accreditation. This year also saw the launch of our People Engagement Programme, established to take forward actions emerging from employee opinion surveys.

I have been greatly impressed with the enthusiasm of staff who have volunteered to take part in the programme from across all NIAO grades and business areas. By harnessing their insight, energy and talents, I am confident we can continue to drive improvements and make our Office an even better place for our people.

Beyond our core work, staff have demonstrated a strong commitment to social responsibility, fundraising and volunteering for the Office's chosen charity, Simon Community. Staff generously donated their personal time to support initiatives and events supporting people experiencing homelessness. These efforts demonstrate the values of our people in seeking to make a positive contribution to local communities. The Advisory Board continues to provide valuable support and challenge. I am pleased to welcome Jill Laughlin, Clare McAleenan, and Dean Sullivan, who joined the Board in June 2025. Together with our Chairperson, Marie Mallon, their experience and insight strengthen the governance and strategic oversight of the organisation. I am grateful for their ongoing contribution, and for the support and efforts of everyone who has supported the NIAO as we continue to provide high-quality public audit to improve public services across Northern Ireland.

I look forward to the year ahead and to building on the progress made during 2025-26.

Dorinnia Carville
Comptroller and Auditor General for Northern Ireland
 

30 June 2026

About the NIAO

1. Who We Are

The role of the Comptroller and Auditor General (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.

2. Why We Exist

Our vision (why we exist) is to provide independence and excellence in audit to improve public services.

3. What We Do

Our purpose (what we do) is making sure public money is spent properly. This is achieved through conducting our key activities.

Support to the Northern Ireland Assembly

Independent support to enable the Assembly, particularly the Public Accounts Committee, to hold public bodies to account.

Financial audits of Central and Local Government Bodies

Audit of the annual accounts of Central and Local Government bodies.

Public reporting on value for money

Focus on key issues facing the public sector in Northern Ireland.

Promoting Good Practice and Fraud Awareness

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

Comptroller Function

Authorising the issue of money from the Northern Ireland Consolidated Fund to enable Northern Ireland Departments to meet their necessary expenditure.

How We Act

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

Values

Partnership

Authoritative

Curious

Truthful

Feedback From Auditees: “The team make a clear effort to build a positive and open working relationship, engaging constructively with us to resolve matters efficiently and in a collaborative manner.” “NIAO communication and engagement is excellent. We have built strong and trusting relationships but at no point has this compromised the independence of the NIAO as we all recognise the need to identify areas for improvement.”

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

Vision

I - Independence and excellence in audit to improve public services.

Purpose

M - Making sure public money is spent properly.

Values

P - Partnership...(collaborative, engaging, respectful) building positive open relationships based on trust and respect as the basis for how we work.

A - Authoritative...(credible, professional, evidence based) diligent and exemplary in our practice, upholding the highest professional and ethical standards.

C - Curious...(examining, interested, outwardlooking) tenacious, inquisitive, and open-minded so that we are continuously learning and improving.

T - Truthful...(courageous, fearless, upfront) constructively saying what needs to be said and doing what needs to be done.

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.

Priorities

High-Quality Public Audit

Support, enhance and promote high standards in public service administration, accountability arrangements and financial management.

Improve Outcomes and Accountability

Promote and influence public service reform and improvement.

Invest in our People and Resources

Be a high-performing, people-focused organisation.

Outcomes

Our stakeholders have confidence in the NIAO's statutory role in providing oversight and assurance on public sector spending.

Public services are improved by accepting, learning from and applying the insights, expertise and good practice developed by the NIAO.

The NIAO is a high-performing organisation committed to continuously improving our people, resources and technology to tackle emerging challenges.

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 was updated and issued in May 2026. The Memorandum which is available on the NIAO 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.

   

Key risks and issues

Quality

The increasing rigour of 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.

Future Changes in Accountability

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 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.

   

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.

Cyber Security

Cyber security remains a critical priority. The evolving threat landscape, characterised by more sophisticated and frequent cyber attacks, underscores the need for robust safeguards in place and continuous vigilance. Ongoing investment in systems, controls, and staff awareness is essential to mitigate risks and respond swiftly to emerging threats.

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 for the next five years.

Our performance in 2025-26 has been measured against this Plan and our Business Plan for the year.

Priority

Priority 1:High-Quality Public Audit
Support, enhance and promote high standards in public service administration, accountability arrangements and financial management.

Activity

Provide assurance through the timely delivery of our annual financial audit programme to International Standards on Quality Management.

Holding the public sector to account through the delivery of quality, timely and accurate reports.

Good Practice Reports completed as set out in our Forward Work Programme.

Anticipated Outcome

Our stakeholders have confidence in the NIAO’s statutory role in providing oversight and assurance on public sector spending.

KPI

1. 100% of financial audits are completed within the statutory or agreed deadline (where accounts are of satisfactory quality).
2. All financial audits are delivered in accordance with Financial Reporting Council standards and those subject to quality control reviews meet acceptable requirements.
3. All public reports are published as set out in our Public Reporting Programme for 2025-26 and meet acceptable quality review requirements (subject to the timely provision of information and clearance by client bodies).
4. Good Practice Reports are published as set out in our Public Reporting Programme for 2025-26 and achieve at least 90% positive assessment in surveys of our stakeholders.

Performance

1. 122 accounts for 2024-25 and 25 prior year accounts were certified in 2025-26.
2. Three 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.
3. Not all of the planned 2025-26 reports were completed however during 2025-26, a total of 24 reports were produced:
4. One Good Practice Guide was issued during 2025-26. In our recent survey of audited bodies, 100% of respondents agreed or strongly agreed that “NIAO Good Practice Guides are a useful resource”.

Achieved in 2025-26

1. Partially achieved.
2. Partially achieved.
3. Partially achieved.
4. Fully achieved.

Priority

Priority 2:Improve Outcomes and Accountability
Promote and influence public service reform and improvement.

Activity

Ensure our work aligns with the priorities of government and the public sector in a proportionate and timely manner.

Promote our work, including effective and extensive engagement to support accountability.

Ensure our stakeholders value our work.

Anticipated Outcome

Public services are improved by accepting, learning from and applying the insights, experience and good practice developed by the NIAO.

KPI

5. Achieve at least 90% positive assessments in surveys of Accounting Officers, members of Audit and Risk Assurance Committees (ARACs) and MLAs.
6. Produce Communications and Engagement Strategy and Action Plan and achieve 100% of relevant actions for 2025-26.
7. 90% of all NIAO recommendations are accepted by audited bodies.

Performance

5. 98% of respondents agreed or strongly agreed that NIAO audit staff provide a high quality and professional service. In an independent survey of MLAs, 84% of respondents reported having a favourable opinion of the NIAO.
6. The Communications and Engagement Strategy was completed and issued in March 2026 and all relevant actions for 2025-26 were delivered.
7. In 2025-26, 93% of our recommendations have been accepted by management.

Achieved in 2025-26

5. Fully achieved.
6. Fully achieved.
7. Fully achieved.

Priority

Priority 3: Invest in our People and Resources
Be a high-performing people-focused organisation

Activity

To develop the capacity and capability of our highly skilled, motivated and versatile workforce.

Embed an open, diverse and inclusive culture which recognises success.

Use our financial resources effectively, efficiently and sustainably.

Anticipated Outcome

The NIAO is a high-performing organisation committed to continuously improving our people, resources and technology to tackle emerging challenges.

KPI

8. Deliver actions for 2025-26 from the plans of our People Related Strategies.
9. Establish the People Engagement Programme and deliver the actions for 2025-26.
10. Manage our finances within 2% of Total Allocated Budget.
11. By reducing our emissions year on year (using 2018-19 as a baseline) reduce total emissions by 48% by 2030 in line with the NI Climate Bill 2022.

Performance

8. During the year, a People Engagement Programme was established to focus on a number of issues identified in the recent employee opinion survey. A number of groups were set up and continue to meet on a regular basis to discuss theme project plans, finalising action plans and expected outcomes.
9. During the year the People Engagement Programme was established and a number of actions were delivered.
10. We delivered within the Allocated Gross Budget with an associated surplus of 3.9%.
11. The NIAO has reduced its carbon emissions, since the 2018-19 baseline year, by 27%. Overall carbon emissions were 293 tonnes against a target of 281 tonnes in 2025-26.

Achieved in 2025-26

8. Fully achieved.
9. Fully achieved.
10. Not achieved.
11. Not achieved.

High-quality public audit

This section of the report provides an overview of how we support and promote high standards in public administration and financial management in a complex dynamic environment.

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
• Impacts of our Reports

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. 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. The total number of the accounts audited in 2025-26 is set out below:

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 2025-26, 122 central and local government accounts (2024-25: 124) were certified. In the reporting period 25 prior year accounts were also certified (30 prior year accounts in 2024-25).

Eleven central government accounts were qualified in 2025-26 (2024-25:15), including one account where the C&AG disclaimed both of her opinions. A disclaimed audit opinion on a set of financial statements 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 was 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 make a report to the NI Assembly which may 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 2025-26, 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 Lottery Funding and Whole of Government Accounts.

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 OBE, a former NIAO Director, undertook this function until 31 December 2025. Brian O’Neill, an NIAO Director, has undertaken this function from 1 January 2026. The LGA, assisted by the NIAO’s staff, is responsible for the audit of local government bodies.

In 2025-26 we completed the audits of 15 local government accounts (2024-25:15). No local government accounts were qualified in either 2025-26 or 2024-25.

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, as aligned to our statutory responsibilities of economy, efficiency and effectiveness:

• Improving Public Services;
• Digital and Skills;
• Climate and Sustainability;
• Governance and Accountability.

Our 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 2025-26 Programme included work in the local government area and addressed important cross-cutting issues that lie beyond the boundaries of any single government department.

Governance & Accountability

Improving Public Services

Economy

Climate and Sustainability

Efficiency

Effectiveness

Digital and Skills

Public Reports

During 2025-26 a total of 24 reports were produced covering a range of key issues in Northern Ireland.

11 Public Reports

11 Local Government Improvement Reports

1 Good Practice Guide

1 Local Government Report

Full copies of these reports can be obtained from our website.

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 2025-26, we produced a good practice guide on Raising Concerns (copies of the report can be obtained from our website).

The following Auditee comments on our good practice guides highlight their value to the public sector:

Feedback From Auditees:

“We have referred to the NIAO Good Practice Guide on Effective Audit and Risk Assurance Committees multiple times, and we find it a really useful source of information.”

“The Good Practice Guides are exceptional.”

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. These reports were published on the NIAO’s website on 31 March 2026.

The Local Government Auditor’s Report for 2025 was also published during the year and is available on our website.

In addition, the Code of Audit Practice was laid before the Northern Ireland Assembly under Article 5(7) of the Local Government (Northern Ireland) Order 2005 by the Department for Communities on 24 February 2026 and approved by a resolution of the Assembly on 14 April 2026. The Code sets out the framework for auditing local government sector bodies in Northern Ireland and will be in place for the next five years.

The Local Government Auditor also published a Statement of Responsibilities of the Local Government Auditor and Local Government Bodies in April 2026. The Statement of Responsibilities summarises the terms and responsibilities between the Local Government Auditor and local government bodies.

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 Standards 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, three accounts were subject to independent external review by the Institute of Chartered Accountants in England and Wales (ICAEW). This is the sixth 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.

The NIAO’s Quality 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 and subsequently design and implement appropriate remedial actions to address each and prevent reoccurrence. The Quality 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.

In addition, training was delivered to all staff involved in financial audit covering key themes identified in the quality control reviews. The Quality Team also completed thematic hot file reviews on a sample of audit files to ensure that issues identified from the quality control reviews are addressed.

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. Four public reports published in 2025-26 were reviewed by other audit agencies as part of the peer review process. Reviewers found our reports to be balanced, authoritative and persuasive and the judgments included in reports are supported by robust evidence and analysis. The reviews also identified learning points that were shared with staff working on public reporting.

Governance, fraud prevention and detection

The NIAO promotes good practice in governance arrangements and helps to combat fraud. The NIAO’s staff attend the audit and risk 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 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. Controls to prevent fraud and error are built into the NIAO’s financial processes. The NIAO does not consider that there is any material fraud or error within its financial statements.

In March 2026 we published a report on Raising Concerns in the NI public sector and an updated Good Practice Guide on Raising Concerns. The updated guide is aimed at helping public sector organisations to understand the value of an open and honest reporting culture, where concerns can be raised and dealt with effectively as part of normal business, leading to strengthened governance. The report and guide can be found 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.

National Fraud Initiative

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 ninth exercise in Northern Ireland has recently concluded and the findings from this exercise will be published in Autumn 2026.

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.

In Northern Ireland, the NFI exercises to date have identified over £55 million of actual and estimated fraud and error.

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. It gives us an opportunity to explain and inform people about our work and helps us focus our questions on public bodies to probe issues and concerns of interest to the public. Where appropriate, we may carry out further audit work in response.

Feedback From Auditees:

“NIAO’s work contributes to improvement by highlighting key issues and promoting good practice across the public sector.”

During the year we received:

• 13 Freedom of Information requests (12 in 2024-25)
• 11 Subject Access requests (5 in 2024-25)
• 2 Environmental Information requests received under the Data Protection Act 2018 (2 in 2024-25)
• 2 complaints (none in 2024-25)

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.

In 2025-26, 20 issues of concern about the use of public money were received (2024-25: 15 issues). Issues of concern are encouraged, dealt with professionally and treated in confidence, as appropriate.

MLA queries

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

In 2025-26, 2 cases were raised, and both are now closed. (2024- 25: 1 case was raised and still ongoing).

Engaging through Social media

Our social media activity continues to profile and build understanding of the NIAO’s work and impact, the opportunities we offer and the accomplishments of our staff. There were nearly 34,000 visits to the NIAO website during the year with our publications and media releases being downloaded over 9,500 times. We also continued to see audiences grow on LinkedIn, with followers increasing by 36 per cent. This year also saw the introduction of our e-newsletter “The Audit Trail” which is issued to key stakeholders and website subscribers on a quarterly basis. The Audit Trail helps keep readers updated on recent key business milestones and publications from the NIAO, and also profiles the Office work environment by highlighting our staff members’ many accomplishments and external engagements.

Our video briefings, animated report summaries and our videos of staff and office promotion (published between April 2025 and March 2026) have been seen over 40,000 times across all our social media channels.

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 any issues of concern, and recognise our successes. As well as maintaining sustained dialogue and interaction, in May 2026 we issued our latest survey to all audited bodies across central government 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 55 audited bodies responded (out of 107 bodies surveyed).

Of the responses received:

98% Agreed or strongly agreed that the NIAO audit staff provided a high quality and professional service

96% Agreed or strongly agreed that the NIAO’s work leads to improvement in public services

100%Agreed or strongly agreed that the NIAO good practice guides are a useful resource

Comments received in relation to NIAO engagement and communication included:

Feedback From Auditees:

“NIAO audit staff engaged constructively with our staff to resolve outstanding issues thus ensuring the Annual Report and Accounts were laid before summer recess.”

“Engagement with the NIAO audit team was consistently constructive and professional.”

An independent survey was also issued to MLAs in the summer of 2025. Responses from this survey indicated that the NIAO is highly regarded and perceived as adding value to MLAs’ work:

88% of MLAs surveyed were familiar with the NIAO.

84% of MLAs surveyed stated that they had a favourable opinion of the NIAO.

75% of MLAs surveyed said they would speak highly of the NIAO.

The NIAO issued a survey 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 over the last year. All respondents, representing each of the main political parties, responded to the survey, expressing very positive satisfaction with:

• the relevance and presentation of the NIAO reports and their ability to support an effective Inquiry;
• the structure, clarity and level of inquiry support provided by the NIAO; and
• the quality of other supplementary information and support by the NIAO including staff approachability and engagement.

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 2025-26 through our public reporting and financial audit work:

Public Procurement in NI

In April 2023 we reported on Public Procurement in Northern Ireland and concluded that the structures and arrangements in place at that time had not provided effective leadership, governance and accountability in public procurement. We recommended that the Department of Finance (DoF) commission a fundamental review of arrangements to look at strategy, policy development and governance and accountability. The Public Accounts Committee made further recommendations regarding the strategic direction and oversight of public procurement in its report in November 2024. It also placed a strong emphasis on Social Value and the impact on SMEs. In response to these findings, DoF has now introduced a number of measures including:

• a Public Procurement Policy Statement which implements assurance arrangements;
• publication of new cross-sectoral performance metrics strengthening the quality and consistency of performance oversight;
• a revised Social Value policy to reduce unintended burdens on micro and small suppliers; and
• publication of a Supplier Communication Strategy.

As a result of this work, 882 microbusinesses and 131 voluntary and community organisations were newly registered on eTendersNI between July 2025 and February 2026, demonstrating improved visibility of opportunities and reduced barriers to participation.

These reforms collectively represent strengthened governance, improved transparency, and enhanced supplier access, directly shaped and accelerated by the NIAO report and the resulting PAC recommendations.

Reducing Adult Reoffending

In our June 2023 report Reducing Adult Reoffending in Northern Ireland, we highlighted weaknesses in strategic oversight, cross-government coordination and outcome measurement that limited the Department of Justice’s ability to demonstrate the impact and value for money of its efforts to reduce reoffending. While a range of initiatives and pilots were in place, there was no overarching, outcome-focused strategic framework to prioritise action, assess effectiveness or support collaboration across departments whose policies significantly influenced levels of reoffending in Northern Ireland.

We recommended that the Department provide stronger leadership through the development of a cross-government strategy for reducing offending and reoffending, supported by clearer governance arrangements, improved use of performance information and better evaluation of interventions. The Department of Justice has subsequently taken steps to strengthen system-wide coordination and accountability, including:

• beginning development of cross-executive Strategy for Reducing Offending and Reoffending.
• work to draft a short-term cross-departmental Reducing Offending and Reoffending Strategic Framework (which is close to being finalised).
• establishing a new senior Strategic Board, chaired by the Permanent Secretary of the Department of Justice, to oversee delivery of this work. The Board met for the first time in May 2026.
• progress has also been made in other key policy and operational areas highlighted in our Report.

Our report also highlighted the importance of sentencing policy and the availability of effective community-based alternatives to short-term custody, alongside concerns about the high proportion of prisoners held on remand and the limited availability of bail support and alternatives to custodial remand.

Since publication, a further review of sentencing was launched in January 2026 alongside progress of the Sentencing Bill. In addition, the Enhanced Combination Order (ECO), an intensive community-based sentencing option which combines probation supervision with unpaid work and targeted rehabilitative interventions as an alternative to short-term custody, has been extended and is now operating in three court areas. This has increased judicial access to a credible community-based alternative to imprisonment, although further expansion remains subject to funding.

The Department of Justice was also successful in securing Public Sector Transformation funding to support the development of a new electronic monitoring model, enabling further piloting of enhanced technology and improved evaluation of its potential role as an alternative to custody and remand. Steps have also been taken to strengthen the evidence base, including work with the Northern Ireland Statistics and Research Agency (NISRA) to develop an outcomes dashboard and additional analytical work to support future decisions in this important area.

Taken together, these actions represent a tangible response to the issues raised in our report, improving governance, policy coherence and analytical capability, although further work will be required to demonstrate sustained improvements in reoffending outcomes.

Planning in NI

Our 2022 report on planning in Northern Ireland made a number of important recommendations to improve leadership and performance across the planning system. In response, the Department for Infrastructure (DfI) established the Planning Improvement Programme which aims to improve the efficiency and effectiveness of the NI planning system by addressing the recommendations made by both the Public Accounts Committee (PAC) and the NIAO.

As part of this programme, DfI has strengthened its engagement with local councils, taking a more visible and coordinated role in monitoring performance, sharing intelligence and promoting system-wide improvement. This clearer leadership has supported a more consistent dialogue on constraints and solutions, particularly for major development applications.

Importantly, this renewed focus has coincided with a measurable improvement in outcomes: average processing times for major planning applications have reduced significantly since the publication of our report, reaching their lowest level since the transfer of planning powers to councils.

Tackling Waiting Lists

In our October 2023 report we highlighted the critical situation within the local health service as it struggled with rising waiting lists for elective care. We reported on the growth in both the number of patients on elective care waiting lists, and the length of time they were waiting for assessment and treatment.

The report made several recommendations for improvement. Since the publication of our report the Department of Health updated the Elective Care Framework in 2024. It successfully secured additional funding in the 2025-26 budget to support the delivery of the Framework and in May 2025 published an associated Implementation and Funding Plan to tackle waiting lists. The Plan sets out a series of targets that will be monitored on an ongoing basis.

There has been positive progress to date with the Department reporting a downwards trend in the number of people waiting for an outpatient appointment and those waiting for inpatient or day care admission to hospitals.

These developments are a very welcome step towards reducing waiting lists and improving public health. The Department has emphasised the need for sustained investment to ensure continued delivery against its targets.

Ambulance Handovers in NI

Our March 2025 report on Ambulance Handovers in Northern Ireland highlighted a sustained deterioration in performance, estimating that delays had cost around £50 million over five years and contributed to an increasing reliance by the Northern Ireland Ambulance Service (NIAS) on private ambulance providers.

In response, the Department of Health accepted the report’s recommendations and has taken a number of actions to implement the recommendations. This has included progressing a value for money assessment of private ambulance usage and committing to expand in-house capacity through additional recruitment and the development of new roles. The aim of these actions is to promote more efficient use of resources by reducing reliance on the private sector for both scheduled and unscheduled care. The report also drew attention to the lack of regulation of the private ambulance sector; since publication, the Department has begun work to explore the necessary legislative and regulatory changes, drawing on best practice in England.

In April 2026 NIAS implemented their “Release to Rescue” protocol with the aim of ensuring no patient waits longer than two hours in an ambulance outside an Emergency Department. NIAS has also strengthened its “Hear and Treat” and “See and Treat” pathways to support better system flow and increase NIAS capacity to meet ambulance demand.

Our report also recommended learning from high performing systems elsewhere in the UK, and this has been actively pursued. For example, departmental officials and clinicians visited a London hospital and shared lessons through a regional workshop in August 2025 to inform emerging guidance.

Waste Management in NI & Waste Crime in NI

Our Review of Waste Management in Northern Ireland was published in July 2024. A key recommendation in the report highlighted the need for the Department of Agriculture, Environment and Rural Affairs (DAERA) to produce an updated waste management strategy. The report made a number of recommendations as regards the content of the strategy, including a focus on waste prevention and the inclusion of measurable targets.

In January 2026, DAERA published, for consultation, “Rethinking Our Resources: Northern Ireland Resources and Waste Management Strategy”. The Strategy embraces a circular economy approach with priority given to waste reduction or prevention and reuse rather than the traditional disposal focus. It outlines 10 targets and 63 specific actions to assist in delivering the strategic objectives. The Strategy includes a section on enforcement to ensure compliance with regulations and targeting of illegal waste activities. A number of actions are proposed to help meet the challenges faced in undertaking successful enforcement and these actions address a number of the issues which were raised in our 2025 report on Waste Crime in Northern Ireland.

Developing the Skills for NI’s Future

In our September 2024 report, we highlighted the need for the Department for the Economy to review its skills programmes and assess how these are contributing to achieving the 2022 Skills Strategy strategic goals, and ensure they are focused on current and emerging areas of need.

The first step in addressing this recommendation was for the Department to develop a Departmental Monitoring and Evaluation Strategy. This Strategy was published in June 2025, and aims to strengthen evaluation practices in order to support effective, value for money policy-making that drives economic growth and improves lives. A thematic skills evaluation is now underway.

In addition, a new three-year Skills Action Plan to support the ambitions of the Skills Strategy and the economic vision was published in October 2025.

Improving Outcomes and Accountability

This section of the report provides an overview of some of the Office’s collaborations with key stakeholders during 2025-26.

Office Collaborations

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

Chief Executives’ Forum and NI Public Sector Chairs’ Forum

We work closely with the Chief Executives’ Forum (CEF), an association of chief executive officers of civil and wider public service 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 work closely with the Northern Ireland Public Sector Chairs’ Forum, a ‘member-led, information sharing and networking resource for chairs of public bodies whose overarching purpose is to enhance leadership in Northern Ireland’.

In June 2025 we hosted a special event with CEF and NI Public Sector Chairs’ Forum on our good practice guide on Effective Audit and Risk Assurance Committees. The session included particular discussion points around addressing emerging and increasingly crucial areas such as cyber security, the potential role of Artificial Intelligence, and best practice guidance for ARAC Members working in local government. Attendees also heard from Brian Whalley, a specialist in public sector governance and accountability training, who has had vast experience training and advising organisations and boards across the UK regions. This was complemented by an address from Sharon O’Connor, ARAC Chair of the Department for Communities, who offered her personal reflections and insights from her hands-on role working across the range of issues and challenges facing ARACs.

We also hosted a number of governance and accountability training events across the year.

Local Government Association

The Northern Ireland Local Government Association (NILGA) is 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 members are drawn from each of the 11 councils. NILGA promotes, develops and champions local government by developing regional, all-council approaches to key issues affecting the sector.

Insight Exchanges

Over the last year we have continued to invite a range of external speakers to take part in our ‘Insight Exchange’ series of events, which focus on sharing information and experiences with NIAO staff across areas of interest or of relevance to our work. We have welcomed a range of public leaders, both past and present, including the Chief Inspector of the Criminal Justice Inspectorate, the Chief Executive of the Northern Ireland Council for Voluntary Action, the Deputy Public Services Ombudsman, the former Chief Executive of Tourism Northern Ireland, and the new Chair of the Chief Executives’ Forum. We also welcomed guests from the private sector, including a session with specialists from a digital fraud prevention company working with clients within the public sector.

Feedback From Auditees:

“The NIAO’s work contributes positively to the improvement of public services, not only through its independent scrutiny but also through the practical insights and recommendations that support stronger governance and continuous improvement across the organisation.”

“NIAO audit staff engaged constructively with our staff to resolve outstanding issues thus ensuring the Annual Report and Accounts were laid before summer recess.”

Some highlights of our year

The Chief Executives’ Forum held the graduation of their Transformative Leaders Programme at the NIAO in March.

C&AG Dorinnia Carville, and NIAO trainee accountant Suibhán Ní Chiarán attended the Department of Finance’s International Women’s Day event at Grand Central Station.

This year we launched of our first Equality, Diversity and Inclusion Strategy and were awarded Diversity Mark Accreditation. Both milestones recognise our continued commitment to building an inclusive workplace where everyone can thrive.

NIAO Trainee Accountants Katie, James and Matthew met future grads at the QUB recruitment fair to talk to them about our Trainee Accountant scheme.

Rodney Allen and Colette Kane delivered a Lunch and Learn session to NIPSO staff on the breadth of the Audit Office’s work and our reporting programme.

C&AG Dorinnia Carville delivers a keynote speech at the 2026 NI Housing Conference, updating representatives from across the sector on developments in relation to our 2025 report on Homelessness.

NIAO staff volunteered at one of our 2025 Charity Partner Simon Com.munity’s youth accommodation projects which are designed for young people aged 16-25, which aims to assist them in their transition towards independent adulthood.

SistersIn Mentoring Day 26
Maeve, Anu and Jill with some participants in the programme.

Simon Community Big Sleep Out 
NIAO staff Fiona, Beth, Jude, Caitlin and Caitlín took part in NIAO’s Charity Partner, Simon Community’s One Big Sleep Out at Stormont.

Macmillan Coffee Morning 2025 
Huge thanks to everyone who baked, bought, donated & judged at our Coffee Morning! We raised an AMAZING £512.50 for Macmillan!

Investing in our People and Resources

This section of the report demonstrates how we ensure the NIAO operates as a high performing organisation to meet emerging challenges.

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

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:

Kirsty O’Neill, Sarah McErlain, Victoria Frazer, Nicola Maguire, Sarah Heanen, Karen Armstrong & Conor Hill

CIPFA Performance Audit Fundamentals Certificate

The Certificate in Performance Audit Fundamentals offers a detailed introduction to the key elements of planning, executing, communicating and monitoring performance audits. Module one introduces the core functions of the public sector and the importance of governance to protect the interests of citizens and ensure officials can be properly held to account. The similarities and important differences in the professional practices of external and internal auditing are clearly described in module two. The third module provides a detailed exploration of practical considerations for performance auditing as well as the conceptual foundations.

Kirsty, Sarah, Victoria, Nicola, Sarah, Karen and Conor completed the CIPFA Performance Audit Fundamentals Certificate. This is a 3-day online course of self-study followed by an exam. Conor Hill commented the certificate is ‘an excellent primer for performance audit’.

Seamus Wade

Transformative Leader Programme

Seamus Wade completed the Transformative Leader Programme delivered by the Chief Executives’ Forum. The programme ran from October 2025 to March 2026 and combined in-person and online modules. The Programme was built on Neuro.Linguistic Programming (NLP) as a practical toolkit for improving leadership, communication, self.management and organisational effectiveness.

It focused on how patterns of thinking (neuro), language (linguistic), and behaviour (programming) shape results. The Programme encouraged participants to assess their own patterns, consider how they might influence others more effectively and navigate complexity with clarity.

Seamus highlighted the benefit of combining theoretical knowledge and practical application in an environment that afforded an opportunity for reflection with other senior leaders in the public sector.

Brian O’Neill

CMI Level 7 Strategic Management and Leadership

Brian O’Neill undertook and completed the Chartered Management Institute Level 7 award in Strategic Management and Leadership course. The course was delivered in person across five days and aims to give senior leaders a sharpened understanding of what makes an effective, strategic leader, and how to achieve this in practice. Brian commented that the course was very engaging, practical and relevant, enhancing his strategic thinking, leadership capabilities and decision-making skills and has supported his professional development as a senior leader.

Jill Aicken, Karen Costley, Anu Kane, Maeve Morgan and Laura Murphy

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.

During 2025-26 five NIAO colleagues took on mentoring roles, each guiding a sixth-form student from various schools across Northern Ireland. The participation of our colleagues underscores the strong commitment within our office to empowering young women, and reflects the genuine satisfaction and sense of accomplishment our colleagues gain from supporting these young women as they develop their leadership abilities and grow their self-confidence. This marks the third consecutive year that our office has actively engaged with the SistersIN programme, a testament to our sustained commitment to mentorship, and reinforces our dedication to nurturing the next generation of female leaders. Looking back on the experience, Jill shared “It was really rewarding to support a young student as they gained confidence and developed their leadership skills. Witnessing their growth throughout the completion of their school-based project, complemented by the leadership development training, made my mentoring journey truly enriching.”

James McGeehan & Katie Williams

Young Scotland and Northern Ireland Programme

This is a 3-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’.

James McGeehan and Katie Williams participated in the Young Scotland and Northern Ireland Programme. The programme consists of 3 intensive days of presentation skills development for those early in their careers, in advance of attendance the candidate had to submit a written presentation and discussion topics.

James reflected on his participation that ‘I developed my public speaking skills by engaging in discussions and presenting my ideas to a range of audiences. This experience helped build my confidence in communicating clearly, thinking on my feet, and contributing constructively to group debates and it was incredibly enjoyable’.

During the year there was further exam and professional development success for our Trainee Accountants and Higher-Level Apprentices. Kyle Jeavons and Alex Kerr successfully completed their Chartered Accountant Ireland (CAI) Final Admitting Exams and were admitted into membership. Kyle is the first person to progress from Higher Level Apprentice, to Trainee Accountant and then onto Auditor within the office. Fiona Cullen also successfully passed her Final Admitting Exams, and along with Alex has taken up an Auditor role in the office.

Trainee Accountants Daniel Bowden, Siubhán Ní Chiaráin and Johnny Feeney passed their Chartered Accountant Proficiency 2 exams, whilst Lauren Robson, Ryan Christie and Scott McClelland passed their Chartered Accountant Proficiency 1 (CAP1) exams.

Connie Foley completed her Higher-Level Apprenticeship, qualifying as an Accounts Technician, and has progressed to a Trainee Accountant role in the office with full CAP1 exemptions from CAI. Holly Mahood, Lewis Kennedy and Louis Matchett- Griffiths successfully completed the first year of their Higher Level Apprenticeship, progressing onto their second year of work and study. They have also secured a conditional offer for a Trainee Accountant role with the office beginning September 2026.

Sickness Absence

The NIAO did not achieve its target of six days’ average sickness absence per employee for 2025-26, mainly due to a number of long-term absences in the period.

Overall sickness absence was 8.17 days lost per employee in 2025-26, an increase on the previous year’s 5.49 days: 5.96 days related to long-term absences and 2.21 days related to short-term absences.

Seventy-four per cent of these absences resulted from the long-term sickness of a small number of employees, with 55 per cent of employees having no sickness absences in 2025-26. The figures for the past three years are as follows:

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.

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. We are due for IiP reassessment in the Spring of 2027.

Employee engagement and wellbeing

We provide our employees with access to a range of resources, such as an on-site gym and wellness facilities, Mental Health First Aiders, access to an online Health and Wellbeing portal, an Employee Assistance Programme and an extensive calendar of wellbeing events run throughout the year.

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 such as lunchtime walks, social events including lunchtime pool competitions, golf tournament, blood donation, gardening club, volunteering activities, pilates, mindfulness, planning for retirement session and arts & crafts which were well-supported during the year. In addition, flu vaccines and bi-annual health checks are provided for all employees.

Engaging with the Community

Our annual Macmillan Coffee morning was again very well supported by our staff and was held in September 2025. Across the year colleagues volunteered for our charity partner, the Simon Community, undertaking maintenance work at their Youth Facility and donating to and creating welcome packs for new clients. Alongside this some colleagues participated in the Simon Community Big Sleep out, sleeping out at Stormont to raise donations for the Simon Community.

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.

“From everyone at Simon Community, we want to say a massive thank you to all the staff at the Northern Ireland Audit Office for the impact that you have helped make over the past year.”

Rebekah Barr, Senior Partnerships and Engagement Manager, Simon Community Northern Ireland

Equity, Diversity and Inclusion

At the NIAO, our vision is “to create a thriving organisation where investing in our people and resources cultivates a high-performing culture that celebrates diversity, ensures equity, and fosters a genuine inclusion and sense of belonging for all employees.”

During 2025–26, the NIAO further strengthened its commitment to EDI, successfully obtaining Diversity Mark accreditation in February 2026. This achievement recognises the organisation’s commitment to advancing diversity and inclusion and to fostering an inclusive workplace. The NIAO also completed the development of its Equity, Diversity and Inclusion Strategy, which was formally launched in April 2026 following consultation with staff, management, the Board and the Trade Union. The Strategy sets out the organisation’s strategic objectives and priorities in this area and will be supported by a detailed EDI Action Plan which is in development, which is designed to deliver measurable outcomes and embed inclusive practices across all aspects of the organisation’s work.Progress was also made in enhancing EDI awareness and capability across the organisation. During the year, a programme of EDI training was delivered to all employees, including the introduction of mandatory training. This programme was designed to build understanding of key EDI principles, support inclusive behaviours, and strengthen leadership capability across the organisation. In addition, the EDI Committee played a key role in promoting awareness and engagement across the organisation. The Committee delivered a range of initiatives and coordinated communications to mark key EDI events and campaigns throughout the year, supporting greater awareness, participation and dialogue among staff.

The NIAO remains committed to embedding Equity, Diversity and Inclusion as a core element of its organisational culture. Championing EDI at all levels is essential to achieving its ambition of becoming a high-performing organisation.

Staff Turnover

The staff turnover percentage, defined as the number of leavers divided by the average staff in post, was 3.8 per cent for the year ended 31 March 2026 compared to 5.6 per cent for the previous year.

During 2025-26 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 have been an accredited Real Living Wage employer since 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 agreed a charter that sets out how our employees will be supported, protected and guided throughout their employment, following a terminal diagnosis.

Feedback From Auditees:

“The communication from the audit team is excellent.”

Resource Accounts 2025-26

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 2025-26 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) 2026, which received Royal Assent on 20 March 2026, together with the Northern Ireland Spring Supplementary Estimates 2025-26 which were agreed by the Assembly on the 23 February 2026, provide the statutory authority for the Executive’s final 2025-26 expenditure plans. The Budget Act (Northern Ireland) 2026 also provides a Vote on Account to authorise expenditure by departments and other bodies into the early months of the 2026-27 financial year.

NIAO Estimate and Budget Process

• Total Managed Expenditure (TME)
  • AME
  • DEL
• Resource DEL
  • Non-ringfenced Resource DEL
  • Ringfenced Resource DEL
• Capital DEL

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 2025 to 2026 - GOV.UK

Budgetary Performance

Details of the NIAO’s 2025-26 performance against Budgetary Control totals is set out in the table below.

Explanation of Variances

Our surplus in Resource DEL this year is primarily due to additional income received in the year higher than what was originally budgeted. This was due to several factors including some audits invoiced at a higher than anticipated cost as well as some additional income from secondments and rental income.

We did not spend any of the capital allocated this year.

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.

The figures below show that the main area of expenditure continues to be staff costs at 73 per cent of expenditure (2024-25: 71 per cent), with 71 per cent of the NIAO’s resources (2024-25: 70 per cent approximately) being focused on financial audit.

Key areas of expenditure

Staff Costs

73%

General Office Expenses

11%

Contracted Out Costs

14%

Non-cash Costs

2%

How we used our resources

Financial Audit

71%

Public Reporting

22%

Governance and Anti-Fraud

5%

Support to NI Assembly and Other Public Bodies and Citizens

2%

Included in the above, the cost of administering the Comptroller Function was £22,000, 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 94.

Resources required in the future

During September 2025, the C&AG and NIAO officials gave evidence to the NI Assembly Audit Committee (NIA AC) in respect of the budget proposed for 2026-27, 2027-28, 2028-29 and 2029-30. The NIA AC agreed that the Executive’s Budget document should make provision for the bid submitted and the NI Executive agreed the 2026-27 allocation of a Resource DEL budget of £11.9 million and a Capital DEL budget of £45,000 for the NIAO.

Summary budget to accounts reconciliation

The Government Financial Reporting Manual requires a table showing a reconciliation between the budgets and accounts:

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 2025-26, we paid 98.4 per cent of bills (2024-25: 98.0 per cent) within 30 days following delivery of the invoice.

In addition to this, government guidelines indicate that, wherever possible, public sector bodies should seek to pay suppliers within 10 working days of receipt of the invoice. For 2025-26 we met this standard for 93.7 per cent of invoices received (2024-25: 94.4 per cent).

Sustainability Report

About this sustainability report

This sustainability report has been prepared in accordance with NICS’s Sustainability Reporting guidance 2025-26, which is aligned with HMT sustainability reporting guidance and the Task Force on Climate Related Financial Disclosures (TCFD) recommendations.

All information included in this sustainability report conforms to the normal public sector financial year of 1 April to 31 March. NI’s Sustainability reporting guidance 2025-26 was issued to NICS departments mid-year, i.e departments were unaware of the information they were expected to collect at the start of the 2025-26 financial year. NIAO has routinely been reporting Scope 1, 2 and 3 emissions since 2021-22. In the medium to long-term, we aspire to obtain ISO 14001 environmental Management Certification.

The information disclosed in this report relates to the building that the NIAO occupies. The NIAO acts as its own policy administrator, coordinating data collection, assurance and preparation of this report.

In order to report the greenhouse gas emission associated with activities, “activity” data such as distance travelled, or tonnes of waste disposed has been converted into carbon emissions. The greenhouse gas conversion factors used in this report were published by the UK Government and can be found via the following link: Government conversion factors for company reporting of greenhouse gas emissions - GOV.UK

Governance within the NIAO

The NIAO has a Net Zero Strategy in place and a Net Zero working group was established in 2021, with a focus on identifying and promoting activities which contribute towards a reduction in our carbon emissions.

The Head of Corporate Services chairs the group and it currently reports quarterly to the Senior Leadership Team (SLT). Membership comprises six employees and staff are encouraged to contribute and make suggestions to the group.

In addition, the Corporate Risk Register Working Group considers the latest in sustainability and environmental risks in its annual horizon scanning exercise and any such risks identified throughout the year can be brought to the attention of the group at any time.

The current governance structure of our sustainability reporting is summarized below.

• Senior Leadership Team
• Head of Corporate Services
• Net Zero Working Group
• Corporate Risk Register Working group

Representatives from the group also attend meetings with representatives from the National Audit Office, Audit Wales, Audit Scotland and the Office of the Comptroller and Auditor General, Ireland as part of an overall sustainability network, discussing individual sustainability projects, sustainability public reporting and sustainability financial reporting standards.

Representatives from the NIAO attend environmental conferences and seminars and report back to both the Net Zero Working Group and the Corporate Risk Register Working Group on any emerging issues. Additionally, some of our staff attended the ICAEW Sustainability Summit November 2025.

Emissions

Emissions Scope 1 (fuel burned) and 2 (purchased electricity)

The NIAO owns the accommodation located at 106 University Street, Belfast. While the building is owned, we operate under the NICS shared contract for gas and electricity supplies.

Table 1: Energy Emissions, consumption and cost for fuel burned and purchased electricity in 2025-26