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DoT to write off LA debts
00:00 12 Jan 1995
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The Department of Transport is to write off œ21.8 million of
bad debt incurred by local authorities, says a report from the
National Audit Office.
The amount is the same as the cost of the A564 Doveridge bypass, which has been controversially shelved, and has been incurred because of problems in auditing trunk road and motorway maintenance contracts.
It is understood that the DoT advanced money to local authorities to act as its agents for maintenance schemes and has had problems in recovering any money not spent.
The NAO says that there is a backlog of between œ360-œ380 million of unaudited accounts which stretch back to 1985-86 and that 40% of this relates to schemes started before 1991.
A joint NAO/DoT review has been set up to look at ways of reducing this backlog which amounts to 12% of the œ3.2 billion advanced since 1985.
The amount is the same as the cost of the A564 Doveridge bypass, which has been controversially shelved, and has been incurred because of problems in auditing trunk road and motorway maintenance contracts.
It is understood that the DoT advanced money to local authorities to act as its agents for maintenance schemes and has had problems in recovering any money not spent.
The NAO says that there is a backlog of between œ360-œ380 million of unaudited accounts which stretch back to 1985-86 and that 40% of this relates to schemes started before 1991.
A joint NAO/DoT review has been set up to look at ways of reducing this backlog which amounts to 12% of the œ3.2 billion advanced since 1985.
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