THE WHOLE OF GOVERNMENT ACCOUNTS is currently an “elaborate accounting exercise” which the Treasury must shape into a more meaningful document, according to MPs.
The Public Accounts Committee’s report into the Whole of Government Accounts (WGA) 2010/11, the second consolidation of the public sector’s finances, said the Treasury should take an “immediate stock take” of how the full picture could be used to assist the management of public finances.
Recommendations include: The Treasury should show how it has operated as the government departments’ finance function, including what action it is taking to improve performance in areas such as debt collection and minimising losses through fraud and error, and the WGA should include key risks to public finances and how they are managed, including cross-departmental issues such as reducing claims for clinical negligence.
It also calls on the Treasury to use the WGA to inform spending decisions, improve its layout for “lay readers” to be able to comprehend the information, and comply with normal accounting rules so all government bodies, including those over which government exerts control, are consolidated within the WGA.
The report also criticised the amount of time it took to produce the consolidated figures. The accounts were published in October 2012 – 19 months after the accounting period being reported on ended.
According to the committee, the Treasury has already noted that accounting and economic approaches could both be used to better inform financial planning, and the WGA will help in that process.
While improvements were made in the accounts production compared to the previous year’s consolidation, the National Audit Office still qualified the accounts as some departments failed to follow accounting standards, some of the valuations and treatments were inconsistent between departments, and some of the department’s accounts were themselves qualified.
CIPFA said that it “fully supported” the committee’s call for a clear plan to improve the WGA to better inform decision-making.
Ian Carruthers, CIPFA’s director of policy, said: “The primary challenges are to address current audit qualifications and to achieve more timely publication.”
The biggest threat of turmoil relates to uncertainties over the US November elections. The markets will have to seriously consider the possibility of Donald Trump being elected
As the British government starts the complex process of considering the form of the UK’s post-Brexit relationship with the European Union (EU), one issue will be foremost in the minds of exporters – tariffs
Anthony Harrington examines the actions trustees and sponsors of defined benifit pension schemes should take in response to Brexit
The abrupt swing - from gloom and despondency after the Brexit result became known, to a mood of complacency now - is premature and deceptive, writes David Kern