No clean bill of health for MoD

Auditors have refused to give the Ministry of Defence's accounts a clean bill of health for the sixth year running.

The National Audit Office raised concerns over record-keeping for equipment and spare parts worth around £10 billion. The department also failed to get permission from the Treasury to pay Chief of Defence Materiel Bernard Gray £245,000 a year.

NAO head Amyas Morse said: "The MoD has made welcome progress in improving the way it keeps track of its inventory and capital spares. It is still not able, however, to provide enough evidence to meet the accounting requirements for its valuation of over £10 billion worth of military equipment.

"It has again not followed proper accounting requirements with regards to leases. Therefore, I am qualifying my audit opinion."

The watchdog said it is now satisfied with how the MoD is accounting for Bowman radio kit - a problem which led it to qualify the books in previous years.

But although there had been "improvements" in records of warehouse stocks, there was still "insufficient evidence" about whether some of it was leased.

Under rules brought in by the coalition in 2010, any remuneration package above the Prime Minister's £142,500 salary has to be signed off by the Treasury.

But the NAO said that had not yet been done in the case of Mr Gray, even though he was appointed to the post in January 2011.

According to the MoD accounts - which were published on Thursday, eight months after the end of the tax year - Mr Gray's annual salary was £240,000-£245,000 in 2011-12.

A note in the document added: "Approval for the remuneration package... is being sought from the Chief Secretary to the Treasury."