More than 100 arm’s-length bodies in NI, audit office report finds

There are more than 100 arm’s-length bodies (ALBs) in Northern Ireland which are responsible for spending more than three-quarters of Stormont’s budget, a new report has stated.

The Audit Office said there are “widespread shortcomings” in the way Stormont departments oversee and work with the public bodies.

The auditor pointed out there is currently no partnership agreement in place between the Department of Education and the Education Authority, which has annual expenditure of £3.35 billion.

The report said the auditor had been advised by Stormont departments that in January there were 101 ALBs, publicly funded organisations which deliver a public or government service, in place in Northern Ireland.

However, the report said there is currently no formal definition of an ALB.

It stated: “Northern Ireland Audit Office was surprised to find that although DoF (Department of Finance) issues guidance which ALBs are required to follow, neither they nor the other departments have a clear definition of what an ALB is.”

The 101 bodies identified were responsible for 77% of departmental spending in 2024-25.

This includes £6.91 billion spent by health and social care trusts, £3.35 billion by the Education Authority and £0.99 billion by the Police Service of Northern Ireland.

There are six ALBs sponsored by Daera, seven by the Department of Education, 15 by the Department for Communities, 20 by the Department for the Economy, four by the Department for Infrastructure, eight by the Department of Finance, 18 by the Department of Health, eight by the Department of Justice and 15 by The Executive Office.

The Audit Office report said they play a “vital role” in delivering public services in the region.

It added: “Despite their significance, this review highlights widespread shortcomings in the way central Government departments oversee and work with their ALBs.”

The auditor pointed to a 2018 report, published by the Department of Finance, which made a series of recommendations including that partnership agreements should be set up between ALBs and their sponsor department.

The report said: “These agreements aim to clearly define the governance and assurance framework for individual ALBs; the roles and responsibilities of ALBs and their respective departments; and the annual plan for engagement between the two.”

The report said around 27% of these agreements remained outstanding by January 2026.

The report said some of the “largest and most strategically critical bodies” continue to operate without signed partnership agreements.

It said the Department of Education had not signed a partnership agreement with the Education Authority, which delivers school services in Northern Ireland.

The report also noted “a lack of central oversight of partnership agreements by the Department of Finance”.

Auditor general Dorinnia Carville said: “The Programme for Government reinforces that ‘working in partnership’ is essential for successful delivery of public services in Northern Ireland.

“Arm’s-length bodies play a vital role in service delivery and are responsible for significant levels of public expenditure.

“Oversight of arm’s-length bodies is essential for providing assurance that the services they deliver, and the significant public expenditure involved, are being managed effectively and efficiently.

“However, such oversight should be proportionate and based on relationships defined by transparency and trust.

“Existing guidance from the Department of Finance offers a solid foundation for partnership working, but this needs support at a system-wide level.”

She added: “This report recommends that the NICS Board plays an active role in ensuring that previous recommendations from the Insight Report are implemented in full.

“It also recommends that more is done to support departments and ALBs to adopt a more consistent and appropriate level of oversight.”