Spare cash left in Government coffers at the end of the financial year should be carried over to avoid last-minute spending sprees to use up budgets, according to top UK Civil Service experts.

They said allowing money earmarked for Government services to be transferred to a new financial year -- at present not allowed -- would discourage "wasteful spending''.

The review added that Ministries could already carry forward money put aside for building works -- and recommended three to five percent flexibility for revenue, or service, budgets.

It said: "Some flexibility on revenue expenditure would eliminate imprudent end-of-year spending and encourage a more responsible attitude and sensible use of resources on the part of Ministries.'' And the special report on the governing of Bermuda added that long-term financial planning -- over a minimum of three years -- should replace the current year-to-year planning schedule.

The probe also pointed out that its proposal to amalgamate Ministries and slash the number of Ministers by nearly half would be an ideal opportunity for a fresh look at the handling of taxpayers' dollars.

The report said: "The proposed re-organisation of portfolios also gives added impetus to the need for a more comprehensive examination of Government spending priorities.'' The recommendations came in a review of the Civil Service carried out by staff from Britain's Civil Service College.

The report said financial procedures were not part of the terms of the review -- but put forward suggestions to improve value for money in Government.

The report added that heads of department should also be given greater scope to move cash between building and service funds and projects.

The review said: "There are some basic principles which need to be upheld and enforced by the Ministry of Finance in its scrutiny and monitoring role.

"However, beyond these principles Ministries should have as much flexibility as possible within the constraints of public accountability.'' The review added that running costs like salaries and administrative expenditure should be clearly separated from cash spent on services to the public.

The report also endorsed the views of Auditor Larry Dennis that his office -- which scrutinises Government spending -- should be funded outside the Ministry of Finance budget to underline his independence from the Government of the day.

The reviewers said Mr. Dennis' hard-hitting reports attacking inefficiency had been "repeatedly ignored by the Executive''.

But they praised the current administration for bringing requests for extra cash to the House of Assembly promptly, rather than having them approved afterwards -- a practice of the previous Government slammed in successive Auditor's reports.

The report added: "The title of the Auditor should be changed to that of Auditor General to reflect the status of the function that is performed by his office and its importance to the maintenance of high standards of Government financial accountability.

"Strengthening the independence of the Auditor would lend greater weight to his conclusions and recommendations.''