Report on the Estimates of the Northern Ireland Audit Office and the Northern Ireland Public Services Ombudsman 2025-26

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Ordered by the Audit Committee to be published on

14 May 2025

Report: NIA 92/22-27 Audit Committee

             

Contents


 

Powers and Membership

1. The Audit Committee is a Standing Committee of the Northern Ireland Assembly established in accordance with Section 66 of the Northern Ireland Act 1998 and Assembly Standing Order No. 58. The Committee has five members and a quorum of two.

2. The Committee:

  • Exercises the functions mentioned in Section 66(1) of the Northern Ireland Act 1998. The Committee therefore agrees, in place of the Department of Finance (DoF), the estimates of the Northern Ireland Audit Office (NIAO) and lays them before the Assembly;
  • Is responsible for tabling a motion for a resolution of the Assembly relating to the salary payable under Article 4(1) of the Audit (Northern Ireland) Order 1987 to the holder of the office of the Comptroller and Auditor General (C&AG);
  • Exercises the functions mentioned in sub-paragraphs 18(2) and (4) of Schedule 1 to the Public Services Ombudsman Act (Northern Ireland) 2016 in respect of the Northern Ireland Public Services Ombudsman (NIPSO); and
  • May exercise the power in Section 44(1) of the Northern Ireland Act 1998.

3. The Chairperson of the Audit Committee also has a lead role in the recruitment of the C&AG.

4. In 2016, the Northern Ireland Assembly Commission (NIAC) and the DoF sought to reflect the constitutional independence of the Assembly from the Executive. This led to the development of a draft methodology/protocol for setting the Commission’s budget. The methodology sets out an approach that is akin to the approach adopted for the NIAO and NIPSO, whereby the Audit Committee provides scrutiny and challenge to the Commission’s expenditure plans and reports accordingly, in recognition of the independence of the Commission. The Committee fulfils this role in place of the DoF.

5. The membership of the Committee is as follows:

Mr Alan Chambers (Chairperson)

Ms Diane Forsythe (Deputy Chairperson)[1]

Mr John Blair

Ms Jemma Dolan[2]

Mr Nick Mathison

 

List of Abbreviations and Acronyms used in this Report

           

Committee: Audit Committee

C&AG: Comptroller and Auditor General

DoF: Department of Finance

MLAs: Member of Legislative Assembly

NIAC: Northern Ireland Assembly Commission

NIAO: Northern Ireland Audit Office

NIPSO: Northern Ireland Public Service Ombudsman

PAC: Public Accounts Committee


  

Introduction

6. Article 6(2) of the Audit (Northern Ireland) Order 1987 provides for the C&AG to prepare for each financial year an estimate of the use of resources by the NIAO.

7. Section 66 of the Northern Ireland Act 1998, and Standing Order 58(1), provide for the Assembly’s Audit Committee (in place of the DoF) to lay that estimate before the Assembly. The Committee may agree modifications to the estimate with the C&AG before laying the estimate in the Assembly. In carrying out this function the Committee has regard to the advice of the Assembly’s Public Accounts Committee (PAC) and the DoF.

8. Paragraph 18 of Schedule 1 to the Public Services Ombudsman Act (Northern Ireland) 2016 provides for the Ombudsman to prepare for each financial year, other than the first, an estimate of the use of resources by the office of the Ombudsman. That estimate must be submitted to the Assembly’s Audit Committee (in place of the DoF). The Committee in considering that estimate must have regard to the advice of the DoF. The estimate is, subject to any modification agreed between the Audit Committee and the Ombudsman, laid before the Assembly by the Committee.

9. This report sets out, at Appendix 1 and 2, the agreed estimates for both the NIAO and NIPSO for 2025-26.

10. The Audit Committee does not have a statutory function to lay the NIAC estimate in the Assembly.

 
Background to the NIAO and NIPSO estimates

11. In October and November 2024, the Audit Committee undertook scrutiny and gathered evidence from both the NIAO and NIPSO in respect of their draft budgets for 2025-26. During this evidence gathering officials from both organisations were questioned about the content of their draft budgets for 2025-26. 

12. Arising from its scrutiny of the NIAO draft budget plan for 2025-26, the Audit Committee agreed that the Executive's Budget document should make provision for NIAO having a Resource DEL Budget of £11,153K (excluding the recently announced increase to Employers’ National Insurance contributions) and Capital DEL Budget of £40K. The Resource DEL was broken down as follows: £10,993K of Non-Ring-Fenced DEL and £220Kof Ring-fenced DEL.

13. Arising from its scrutiny of the NIPSO draft budget plan for 2025-26, the Audit Committee agreed that the Executive's Budget document should make provision for NIPSO having a Resource DEL Budget of £5,150K (excluding the recently announced increase to Employers’ National Insurance contributions) and Capital DEL Budget of £0K.  The Resource DEL was broken down as follows: £4,950K of Non-Ring-Fenced DEL and £200K of Ring-fenced DEL.

14. The Committee’s agreed position was outlined to the DoF by way of letter and published in its Report. This position was subsequently reflected in the Public Expenditure Final Budget 2025-26 announced on 3 April 2025.

 

NIAO estimate 2025-26

15. The C&AG has prepared an estimate of the use of resources by the NIAO for 2025-26 and this was submitted to the Committee on 25 April 2025. The estimate includes a request for resources by the NIAO for ‘Audit and assurance services; promoting economy, efficiency and effectiveness in the use of public funds and resources; conducting exercises to assist in fraud prevention and detection; expenditure on activities that are required as a result of the United Kingdom’s exit from the European Union; governmental response to the coronavirus COVID-19 pandemic; administration; related services; UK Covid-19 Inquiry activities; associated non-cash items.’

16. The estimate is attached at Appendix 1 and reflects the figures set out in the Executive’s Budget document. The NIAO advised the Committee that there was

“….. a small difference of £55k from the £11,153k agreed by your Committee. This relates to Ringfenced DEL depreciation. DoF indicated that it will not receive confirmation of the NI Block Ringfenced DEL figure until the Westminster Main Estimates for 2025-26 are completed and DoF therefore recommended that we retain our Ringfenced DEL allocations at the 2024-25 level, until this confirmation is obtained. Adjustments will be processed as part of the In-Year Monitoring process.”

 

NIPSO estimate 2025-26

17. The Ombudsman has prepared an estimate of the use of resources by the NIPSO for 2025-26 and this was submitted to the Committee on 08 May 2025. The estimate provides for expenditure by the NIPSO on “Investigating complaints of injustice suffered through maladministration by government departments, statutory agencies, public bodies, local government and health and social care bodies, general and independent health care providers, colleges, universities and boards of governors of grant aided schools; undertaking investigations into systemic maladministration without the need for complaint; improving standards of complaints handling by public bodies including publication of statistics, best practice and training; investigating and adjudicating on complaints on local government ethical standards against councillors; severance payments; governmental response to the coronavirus COVID-19 pandemic; UK Covid-19 Inquiry activities; activities that are required as a result of the United Kingdom’s exit from the European Union; administration; backdated holiday compensation payments; related services; investigation of complaints about judicial appointments made by Northern Ireland Judicial Appointments Commission; other non-cash items.

18. The estimate is attached at Appendix 2 and reflects the figures set out in the Executive’s Budget document.  NIPSO has however drawn the Committee’s attention to the following:

“I can confirm that the figures contained within the Estimates are consistent with the 2025-26 NIPSO budget that the Committee has previously agreed and in respect of which the Committee Chair wrote to the Finance Minister on 15 November 2024. We would, however, draw your attention to an additional reconciling item relating to £37k depreciation. The adjustment arose due to an error in reporting between NIPSO and DoF and will be corrected at the June 2025 monitoring round to align Estimates and the Committee agreed budget.”

 

Committee consideration

19. While the figures contained within the estimates were agreed by the Committee at the budget planning stage, in pursuance of its statutory functions, the Committee is still required to complete the process of agreeing and laying the estimates.

20. The Committee received written submissions from both organisations as well as briefings at its meeting on 14 May 2025. This included question and answer sessions which allowed members to seek clarification on a number of points.

21. The Committee was content that the estimates reflected the budget agreed by the Committee in November 2024, and was content with the rationale provided by both organisations in relation to the following minor variations:

a. NIAO £55k (paragraph 16 refers).

b. NIPSO £37k (paragraph 18 refers).

22. Following consideration, the Committee agreed the estimates. The Committee subsequently agreed this report for publication and laying in the Assembly. As part of its obligations, the Committee must have regard to the view of DoF in relation to the submitted estimates for NIAO and NIPSO. The Committee must also have regard of the view of PAC in relation to the submitted NIAO estimate.  The report, however, had to be agreed subject to the views of DoF and PAC in respect of the estimate for NIAO, and the views of DoF in respect of the estimate for NIPSO.  This was necessary due to the extremely tight timescales specified by DoF for reporting the outcome of the Committee’s considerations.  Both NIAO and NIPSO submitted their estimates to DoF in April/May 2025.

 

Conclusion

23. The publication of this report therefore gives effect to the Committee’s function of laying the estimates of the NIAO and NIPSO before the Assembly. The Audit Committee will forward the estimates to the DoF for inclusion within the Main Estimates 2025-26.


 

Links to Appendices


Appendix 1: Northern Ireland Audit Office Estimate 2025-26

View the Northern Ireland Audit Office Estimate 2025-26 at the following link


Appendix 2: Northern Ireland Public Services Ombudsman Estimate 2025-26

View the Northern Ireland Public Service Ombudsman Estimate 2025-26 at the following link


Appendix 3: Minutes of Proceedings related to the Report

Minutes of Proceedings


Appendix 4: Related correspondence considered by the Committee

View correspondence to Mr Alan Chambers MLA from NIPSO: 2025-26 Main Estimates at the following link

View correspondence to Mr Alan Chambers MLA from NIAO: 2025-26 Main Estimates at the following link

 

You may re-use this publication (not including images or logos) free of charge in any format or medium, under the terms of the Open Northern Ireland Assembly Licence.

Find out more about the Open Northern Ireland Assembly Licence.

This Report can be made available in a range of formats including large print, Braille etc. For more information please contact:

Audit Committee Clerk, Ashleigh Mitford

Northern Ireland Assembly

Parliament Buildings

Ballymiscaw

Stormont

Belfast BT4 3XX

 

Telephone: 028 90521843

Email: committee.audit@niassembly.gov.uk


[1] Mr Keith Buchanan left the Committee on 5 April 2024. Ms Diane Forsythe replaced Mr Buchanan as Deputy   Chairperson

[2] Ms Ciara Ferguson left the Committee on 10 February 2025. Ms Dolan replaced Ms Ferguson.