Work neededon legal aid fraud and error: NIAO

He made the call after issuing a report on the results of his audit of the 2019-20 accounts of the Legal Services Agency Northern Ireland.

The accounts received a qualified audit opinion in 2019-20, having been qualified every year since 2003 due to a lack of effective counter fraud arrangements and weaknesses in the financial estimates of provisions for ongoing legal aid cases.

The auditor’s report notes that progress has continued to be made by the Agency in estimating levels of official error in its legal aid expenditure.

Mr. Donnelly commented: “Some progress has been made by the Agency and the Department in developing an effective counter fraud strategy.

“However, further work is needed to produce an estimate of fraud and error by legal aid claimants and legal practitioners.”

“Progress has also been made on estimating provisions to provide a more robust estimation of the Agency’s legal aid liabilities.

“A new case management system has been established this year and when this has had a chance to fully bed in it should improve the Agency’s ability to prepare these estimates.”

According to his report, statistics produced by the Agency estimating that £6.2 million of overpayments and £2.1 million of underpayments of legal aid costs were made during the year due to official error. It adds that there were ‘limitations in the scope of my work due to insufficient evidence available to: satisfy myself that material fraud and error by legal aid claimants and legal practitioners did not exist within eligibility assessments of legal aid applicants and in expenditure from legal aid funds; support the assumptions and judgements used in the determination of £131.1 million out of a total year end provision for legal aid liabilities of £152.4 million at 31 March 2020; and the resulting adjustments required to the annual legal aid expenditure.’

Legal aid expenditure during 2019-20 totalled £98.7 million.