Public Accounts Committee seeks evidence of sustained improvement at Northern Regional College

The Assembly’s Public Accounts Committee has expressed serious concern about the financial management and governance failures at Northern Regional College but welcomed the progress made to address issues identified by the Comptroller and Auditor General.

At its meeting on 17 September 2026, the Committee heard from the Department for the Economy (DfE) and the Northern Regional College (NRC)* about serious problems with the College's 2023-24 accounts. The Comptroller and Auditor General (C&AG) signed off the accounts with a ‘disclaimed opinion’, meaning she was unable to express an audit opinion on them.**

Members of the Committee were told that serious shortcomings in the College's financial management led to repeated revisions of its accounts, with accounting errors totalling £8.4 million identified and corrected during the audit. Auditors were unable to verify more than £11 million of balances because accounting records were incomplete and key supporting information was unavailable.

Members explored how the situation arose, the adequacy of governance and Departmental oversight arrangements - and whether the remedial measures that are now being implemented were sufficient to prevent a recurrence.

Chair of the Public Accounts Committee, Daniel McCrossan MLA, said: "We remain seriously concerned about the significant financial management and governance failures that took place at Northern Regional College - and their consequences.

"We heard evidence of weaknesses in financial controls, in accounting processes and record-keeping. Staffing capacity and governance arrangements led to substantial delays relating to the College's accounts and ultimately to the Comptroller and Auditor General being unable to provide an audit opinion.

“A disclaimer such as this is highly unusual - and basically means there wasn’t enough reliable financial information and supporting evidence available to verify the accounts.

"The scale of the issues identified is deeply concerning. It is particularly troubling that problems highlighted during the previous audit in 2022-23 were not addressed effectively.  It took the situation to deteriorate further before more robust action was taken." ***

PAC Members queried how weaknesses of this scale were allowed to develop and persist without being identified or addressed by the College's senior management, Governing Body and Audit and Risk Committee.

Daniel McCrossan MLA continued: "The Committee is concerned that the Department's oversight and assurance processes did not identify and address these issues quickly enough. We asked why earlier intervention failed to secure the necessary improvements and why stronger measures were not introduced sooner.

“We want the assurance that similar weaknesses do not exist elsewhere within the Further Education sector or across the Department's numerous arm's-length bodies."

Members noted the wider consequences of the failures, including the impact on the Department for the Economy's Group Accounts and the additional cost to the public purse arising from delays and extensive audit work.

The Committee welcomed the recovery measures now in place, including the College's improvement programme, as well as additional financial expertise, strengthened governance arrangements and enhanced Departmental oversight.

However, Members stressed that progress must now be demonstrated through sustained improvement and tangible results.

The PAC Chair added: "The Committee welcomes the progress reported to date and recognises the work that is now under way to strengthen financial management, governance and accountability arrangements.

"However, we are not yet reassured that the underlying problems have been fully resolved. The effectiveness of the measures introduced must be evidenced through timely, properly-prepared accounts and improved audit outcomes in the years ahead.

"Given the seriousness of these issues, the Committee will keep a watchful interest in the College's progress and has asked the Department to provide further updates, including on the completion of outstanding accounts.

"It is essential that lessons are learned, accountability is clearly established and public confidence restored."

The Committee intends to reflect the matter in its legacy work and will recommend continued scrutiny by its successor Committee during the next Assembly mandate.

Ends

For further information please contact Felicity Templeton, Assembly Communications Office on felicity.templeton@niassembly.gov.uk or 07977 635930

Notes to Editors

• * Northern Regional College has four main campuses located across the north-east of Northern Ireland – in Ballymena, Coleraine, Magherafelt and Newtownabbey https://www.nrc.ac.uk/
• On 17 September 2026, the Public Accounts Committee took evidence from the Department for the Economy and Northern Regional College on the College's 2023-24 Annual Report and Accounts.  You can watch the meeting again here.
• ** The Comptroller and Auditor General disclaimed both her true and fair opinion and regularity opinion on the NRC’s 2023-24 financial statements because sufficient appropriate audit evidence could not be obtained.

The audit identified fundamental weaknesses in the College’s financial control environment, significant deficiencies in accounting records and inadequate supporting evidence.

*** The C&AG had raised concerns following the 2022-23 audit about the quality of financial information and delays in responding to audit queries. Those issues persisted and the quality of the 2023-24 accounts and working papers deteriorated. The 2023-24 audit was completed around 19 months after the normal reporting deadline.