The Wales Audit Office (WAO) has uncovered a black hole in its accounts of more than £1m.
WAO, which ensures billions of public money in Wales is spent properly, also admitted it had been breaching financial rules since 2005.
The £1.049m shortfall relates to pension liabilities for staff who had left, which should have been disclosed in its accounts.
The assembly Public Accounts Committee chair said he is “extremely concerned”.
On the advice of external auditors the liabilities did not appear in the accounts, which is contrary to the financial reporting standards the WAO expects of other public organisations.
The organisation has asked the UK public spending watchdog the National Audit Office to conduct an investigation of its accounts for the last five years.
This is to examine whether there have been any other breaches of the financial reporting rules.
The disclosure was described as “embarrassing” by the new Auditor General for Wales, Huw Vaughan Thomas, and “staggering” by AMs.
More to follow…
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