Falling prices will expose FCW claim
FORESTRY Commission Wales (FCW) has left itself vulnerable to falling timber prices, a report has found.
The Wales Audit Office said FCW's income from sources other than timber sales had decreased considerably since its last inspection five years ago.
"This failure to diversify its income base makes FCW vulnerable to falling timber prices," said the audit office report.
It found the FCW had improved in some areas of risk management, but not others. The report said it wasn't clear if FCW had identified opportunities to improve the way it runs its business and delivers responsibilities — even though its own risk management policy requires it to do so.
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Auditors also found a contract for security services exceeded its estimated three-year value within two years, and did not comply with FCW's own procedures — nor those of the Official Journal of the European Union, as it should.
The FCW is merging into a new body, Natural Resources Wales, on April 1.
Auditor General for Wales, Huw Vaughan Thomas said: "FCW has made marked progress since we first reported in 2008 but significant challenges remain for its successor."