§ Mr. William PowellTo ask the Secretary of State for the Environment if he will make a statement about the qualification by the Comptroller and Auditor General of his Department's appropriation accounts in respect of the urban programme.
§ Mr. TrippierThe Comptroller and Auditor General has qualified his certificate for the Department's Appropriation Accounts for 1985–86 and 1986–87, which have been prepared and audited in the normal way. This is because of continuing uncertainty about a considerable backlog of uncertified expenditure by local authorities supported by grant aid from my Department under the urban programme (class X, vote 3).
A backlog of urban programme claims built up during the early 1980s. Local authorities are paid grant on account while urban programme schemes are in progress. They are then required to submit final claims, which are subjected to audit by the local authority's auditors. Some claims were submitted very late. In September 1986, 215 claims awaited certification, covering expenditure up to 31 March 1985 of £345.9 million.
In his report on the accounts for 1986–87, the Comptroller and Auditor General recognises that the 688W Department has made "significant progress" over the last year in reducing that backlog. By September this year, the backlog had been reduced to 78 claims covering uncertified expenditure of nearly £210 million. The report notes that changes had been made in the management of the urban programme, and are proving successful in preventing any further backlog from accumulating. The core of the remaining backlog concerns claims from the abolished Greater London council and some of the Metropolitan county councils, and 16 Labour-controlled authorities.
The backlog of claims does not mean that money has been lost or misappropriated. It was paid to local authorities for schemes that have been completed. Certification by the local authority auditors is required to show that the grants have been used for the purpose for which Parliament voted them. The auditors require detailed material from individual authorities to enable them to issue those certificates. The Department is continuing with the full co-operation of local authority auditors to reduce the backlog further.