IT problems have been cited as a contributing factor in the Rural Payment Agency's late or incorrect payment of subsidies to farmers, according a National Audit Office (NAO) report published today.
The Delays in administering the 2005 Single Payment Scheme in England report says the scheme went over budget and faces more problems if issues with the IT system is not remedied.
The NAO says the Single Payment Scheme was budgeted at £76m but, by March 2006, had reached £122m. It expects costs to increase further.
It also says that a tightening of deadlines and lack of proper testing of the IT contributed to delayed payments.
'The timetable to introduce the scheme was tight, and became tighter following changes to the original specification of the IT system to incorporate changes to EU Regulations, legal clarification of the regulations, ministerial decisions and operational changes such as the design of the application form,' says the report.
'Nonetheless, difficulties within the Agency’s control contributed to delays in making payments. Each element of the IT system was tested, but the system was never tested as a whole before the scheme was introduced, and problems arose once it went live,' it says.
Sir John Bourn, head of the NAO, believes problems will persist.
'Foremost among the Agency’s priorities now must be to determine if the administrative and computer systems for mapping land and processing claims are really up to the job. Until that happens, there is little prospect the problems will be remedied in time to deal with the 2006 claims,' Bourn said.
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