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A report from the National Audit Office (Managing resources to deliver better public services, (HC 61-1 Session 2003-2004)) published on 12 December 2003, finds that some government departments have improved their resource management, but need to do more to ensure that money meant for public services actually gets to the front line.
The study was based on detailed examination of four case study bodies. Evidence was also obtained from detailed structured interviews at six other departments and agencies, the National Audit Office's financial audit of departments and agencies, and comparisons with overseas bodies, the private sector and local government. Over a third of departments still rely on cash-based management information and therefore do not know how much it really costs to deliver services. This increases the risk that poor value for money may go undetected or that the investment needed to improve services in the future may be underestimated. More needs to be done to overcome constraints such as insufficient IT system capability and financial expertise.
The full report can be viewed on the National Audit Office website