The Home Office's financial management has been praised as "a model of good progress" by the Committee of Public Accounts just three years after its financial systems were deemed to be in "disarray".
The scrutiny panel, who published their 46th report today, said that although the Home Office had shown a complete turnaround in progress since 2006, improvements had yet to become solid financial management at all levels.
Edward Leigh MP, chair of the committee, said: "The Home Office has come a long way since 2006 when its basic financial systems and processes were in disarray. Such has been its progress in improving its financial management that it is now being extolled by the Cabinet Office as a model of good progress in the Civil Service.
"This does not mean that sound financial management has now been established at all levels throughout the Home Office and in all its business activities. That must be the overriding objective. But there has been great improvement and things are going in the right direction. The department must build on the momentum it has achieved."
Leigh said that the department still needed to better understand, at all levels of its business, what strategies were giving good value for money and still had continuing issues with fees and charges.
The Home Office came under particular criticism and review in 2006 for it's handling of asylum seekers after Charles Clarke, the then home secretary, was forced to admit that some serious offenders had been released from prison without being considered for deportation- prompting the programme to clear the backlog of unresolved asylum cases. Leigh said juggling the clearance of these legacy cases along with new problems was one of the challenges still facing the department.
"It should make sure its systems have the flexibility, capacity and capability to respond to new challenges, as well as being able to tackle existing ones such as knowing who is in the country and the clearance of asylum legacy cases," he said.
The CPA report said the Home Office had made "significant improvements" to capacity, capability, processes and procedures in response to criticism given by the committee in it's 2006 Capability Review Assessment, by recruiting capable accounting staff to key roles throughout the Home Office.
The CPA said the Home Office was also taking a "bold step" in focusing on greater accountability for grants given to police authorities by expanding the role of HM Inspectorate of Constabulary. Around 70% of the Home Office's £11.8bn gross budget is paid out in grants to partner organisations.
The CPA said the Home Office had "assured us that it is 'ready for anything' and is confident of its ability to identify its priorities and respond appropriately to changes in them."
