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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/03/whitehall-handed-spending-warning.jpg"><img class="alignnone size-full" title="George Osborne's efforts to tackle the deficit are being hampered by Whitehall, the official spending watchdog warned" src="http://londonglossy.com/wp-content/uploads/2011/03/min-whitehall-handed-spending-warning.jpg" alt="George Osborne's efforts to tackle the deficit are being hampered by Whitehall, the official spending watchdog warned"/></a></p>
<p>The Government&#8217;s efforts to tackle the deficit are being hampered by poor financial management in Whitehall, the official spending watchdog has warned.</p>
<p>The National Audit Office (NAO) said that government departments were &#8220;generally weak&#8221; at monitoring their financial position and many did not fully understand the cost of their activities.</p>
<p>&#8220;It remains unusual for departments to have good information on the unit costs of outputs, measures of productivity or the value of outcomes, especially where outcomes cross departmental boundaries,&#8221; the NAO said.</p>
<p>&#8220;Without information on costs and benefits, departments do not have a sound basis for making fully informed choices about what activities to stop, to change, and to continue, as they were asked to do in the spending review.&#8221;</p>
<p>The head of the NAO, Amyas Morse, said that good financial management was still not established as an &#8220;indispensable part&#8221; of departments&#8217; deficit reduction strategies.</p>
<p>&#8220;We do not feel that the culture of the civil service has yet taken information-led management, and financial management in particular, to its heart,&#8221; he said.</p>
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