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Security And Intelligence Agencies

Volume 400: debated on Monday 24 February 2003

The text on this page has been created from Hansard archive content, it may contain typographical errors.

To ask the Prime Minister what weaknesses of control in 2001–02 were identified in the security and intelligence agencies in those areas which do not comply fully with generally accepted accounting practice or the requirements of the Resource Accounting Manual; what the consequences were, including in terms of financial loss; what is being done in 2002–03 to address these weaknesses; and if he will make a statement. [98161]

It is a long-standing Government policy not to make public information relating to the accounts of the individual security and intelligence agencies. Such information is outside the scope of the "Code of Practice on Access to Government Information" (paragraph 6 of part 1). The full details of individual Agency accounts and the Comptroller and Auditor General's opinions on them are available to the Chairman of the Public Accounts Committee and to the Intelligence and Security Committee, who are able to scrutinise the detailed accounts on Parliament's behalf.Parliament has already been informed that the Comptroller and Auditor General qualified his opinion on 2001-02 resource accounts of the Government Communications Headquarters, saying that he was "unable to obtain all the information and explanations that [he] considered necessary regarding the valuation of certain fixed assets, prepayments and related figures in the accounts" (HC368 of 30 January 2003, page 6). This is not a new problem and was addressed in the Intelligence and Security Committee's last Annual Report (Cm 5542) and the Government's response (Cm 5543). The Government continues to take this problem seriously, and the Director of GCHQ and Sir David Omand are taking steps to improve the situation. This shortcoming in the accounts has not had any impact on GCHQ's operations. There is no evidence that this problem, has led to any material financial loss.

To ask the Prime Minister what weaknesses of control in 2001–02 were identified in the security and intelligence agencies in the areas of (a) asset management, (b) management of consultants, (c) suspense accounts, (d) records management, (e) management information and (f) contract management; what the consequences were, with particular regard to financial loss; what is being done in 2002–03 to address these weaknesses; and if he will make a statement. [98162]

It is long-standing Government policy not to make public information relating to the accounts of the individual security and intelligence Agencies. Such information is outside the scope of the "Code of Practice on Access to Government Information" (paragraph 6 of part 1). The six areas identified here, which have been made public (in HC368 of 30 January 2003, page 5) are drawn from the Agencies' individual statements of internal control, the full details of which are available to the Chairman of the Public Accounts Committee and to the Intelligence and Security Committee. On the matter of the shortcomings in GCHQ's management of assets and the Government's determination to correct these, I refer my hon. Friend to the answer I gave him today. Weaknesses in the other areas mentioned were of a smaller scale and steps have already been taken to improve control in these areas. There is no evidence that any of these weaknesses have led to material financial loss and there has been no impact on the Agencies' operational effectiveness.