The Ministry of Defence (MoD) is unaware of the location of radios worth Ap184 million, and is unable to provide evidence of the existence and condition of assets worth Ap6.3 billion. This shortfall in accounting is reflected in the decision by the National Audit Office to qualify the MoD accounts for the fourth successive year. The Committee thinks this year's qualification should have been foreseen, given that it was a clear requirement on all Government departments to adopt the relevant reporting standards from 2009-10. It is unsatisfactory that the MoD expects their stock control problems to continue for another two to four years. The report notes the period of intense change that the MoD is going through, and recommends that any cuts to staffing levels must be appropriate for future business need and managed with care. The Committee will study the outcomes of the report of the Defence Reform Unit (ISBN 9780108510663) to ensure that the MoD retains the right skills. This will need to be reflected in decisions on redundancies through voluntary exit and otherwise so that the Department is not left without the right skills and experience required for effective performance. The Committee wishes to be assured that decisions on the scrapping of assets before the end of their useful life have been made on the basis of a sound cost-benefit analysis, taking into account the savings to be achieved and the effect of the loss of capability.Since 2009a10 this manual is based on International Financial Reporting Standards (IFRS) that has been a resource intensive ... Mod Statement of Financial Position (SOFP) does not enhance the decision making process for senior management in the Department. ... Current practice in this area is unsatisfactory in that no system solution has been devised that will allow us to automate the calculations.
|Title||:||The Performance of the Ministry of Defence 2009-10|
|Author||:||Great Britain: Parliament: House of Commons: Defence Committee|
|Publisher||:||The Stationery Office - 2011-07-05|