More needs to be done to ensure that oversight of Northern Ireland’s public
sector Arm’s Length Bodies (ALBs) is proportionate and consistent. This is
among the conclusions of a report published today (25 March 2026) by the
Comptroller and Auditor General.
Dorinnia Carville’s report on “Partnership Working: Departments and Arm’s
Length Bodies” reviews progress made on addressing shortcomings in the way
NI government Departments oversee and work with ALBs. These shortcomings
were highlighted in a 2018 Insight Report, published by the Department of
Finance, which made a series of recommendations for improving the approach to
sponsorship.
Today’s report highlights that Northern Ireland’s ALBs play a vital role in
delivering public services. Collectively, these bodies were responsible for 77 per
cent of departmental spending in 2024-25.
Despite the importance of ALBs and their working relationships with sponsor
Departments, the report notes that many recommendations made in the 2018
Insight Report have not been implemented fully or at pace.
The report includes recommendations around Partnership Agreements. These
Agreements aim to clearly define the governance and assurance framework for
individual ALBs; the roles and responsibilities of ALBs and their respective
Departments; and the annual plan for engagement between the two. However,
despite Department of Finance guidance indicating that Partnership Agreements
should be phased in from 1 April 2020, by January 2026 around 27 per cent of
Agreements had yet to be yet to be signed and published on sponsor
department websites as required by DoF guidance. These included the Education
Authority which recorded a total resource spend of over £3.3 billion in 2024-25.
Today’s report notes an absence of a formal definition of what constitutes an
ALB and a lack of central oversight of Partnership Agreements by the
Department of Finance, which does not routinely track whether Agreements are
in place or being reviewed in line with its guidance.
The NIAO review included stakeholder engagement with representatives from
ALBs and sponsor Departments. The report notes that, while some ALBs
reported improved dialogue with their Departments, several described ongoing
challenges to partnership working. Additionally, the report notes that staffing
levels in Sponsor Teams with Departments have increased by nearly 11 per cent
2019, despite the introduction of guidance on the need for proportionate
oversight of ALBs.
Commenting on the report’s findings, Ms Carville said:
“The Programme for Government reinforces that ‘working in partnership’ is
essential for successful delivery of public services in Northern Ireland. Arm’s
length bodies play a vital role in service delivery and are responsible for
significant levels of public expenditure.
Oversight of arm’s length bodies is essential for providing assurance that the
services they deliver, and the significant public expenditure involved, are being
managed effectively and efficiently. However, such oversight should be
proportionate and based on relationships defined by transparency and trust.
Existing guidance from the Department of Finance offers a solid foundation for
partnership working, but this needs support at a system-wide level. This report
recommends that the NICS Board plays an active role in ensuring that previous
recommendations from the Insight Report are implemented in full. It also
recommends that more is done to support Departments and ALBs to adopt a
more consistent and appropriate level of oversight.”
ENDS
