Financial controls

Date: 02/03/2000

MUCH of the concern about Kinnock's proposals over the past month has focused on his plans to decentralise financial controls within the institution as part of efforts to create “an administrative culture which encourages officials to take responsibility for activities for which they have control”.

The paper seeks to allay fears that this would in fact mean laxer controls by setting out what is proposed more clearly, detailing how the transition will be managed and spelling out the roles of the Central Financial Service, the Audit Progress Committee and the Internal Audit Service in assisting and monitoring the work done by individual departments.

The paper promises “clear rules defining the responsibilities of each financial actor”, and says officials who fail to meet these standards will have their responsibilities for financial decisions withdrawn.

There will also be “simpler, consolidated rules and procedures in the areas of grants and procurement” and the Commission will consider creating an independent body to handle complaints arising from procurement procedures.

Specialist training will also be given to staff immediately on the principles behind these reforms.