National Audit Office: Effective cost sharing not currently 'sustainable'

At the request of the Responsibility and Cost Sharing Advisory Group the National Audit Office (NAO) has reviewed whether Defra's accounting systems could support cost sharing.  Whilst it should be noted Defra's accounting system where not designed for cost sharing the NAO concluded: "To be sustainable in the longer term, significant changes to financial recording systems would need to be introduced to routinely produce the necessary information to support any cost sharing arrangement that may be proposed."

This conclusion echoes the concerns raised by BHIC in its reponse to the initial proposals, that have now been dropped. The BHIC continues to work with the Government for a better and fairer long term solution.

October 19th, 2010