Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Accepted
In the 2019–20 WGA, the Treasury presented some important trend analysis within the Performance Report...
Recommendation
In the 2019–20 WGA, the Treasury presented some important trend analysis within the Performance Report on income and expenditure, as well as assets and liabilities.47 This is an aspect of the WGA reporting that we welcome as an incredibly useful aspect of what the WGA is geared towards. However, we raised with the Treasury how in some areas there has been a lack of consistency when it comes to how this information is presented. For example, the analysis of liabilities contains data which has, in previous reports, been presented as a pie chart but is now presented as a bar chart. The Treasury agreed that maintaining consistent presentation of data year-on-year makes it easier to compare information over time. The less consistent the presentation, the less accessible the WGA becomes. Given the unique perspective the WGA offers across public finances, the Treasury should ensure that comparison across years and across reports is simple and unambiguous.48
Government Response Summary
The Treasury will build on the WGA performance report to ensure comparative data is presented as effectively as possible, to enhance the useability of the accounts, and provide clear prior year data to aid comparability where presentational changes are made.
Government Response
Accepted
HM Government
Accepted
4. PAC conclusion: Inconsistent presentation of data between years, and lack of reflection of current Government policies and economic context, reduce the usability of the Whole of Government Accounts. 4. PAC recommendation: The Treasury should ensure that analysis in the WGA supports comparability and reflects developments since the reporting date such as the impact of high inflation. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: July 2023 4.2 The Treasury is committed to continuous improvement of the WGA performance report, and made several improvements to the WGA performance report in 2019-20, including additional trend data. The WGA performance report includes 5-year trend data for many accounts areas and the department will build on this to ensure comparative data is presented as effectively as possible, to enhance the useability of the accounts. WGA will continue to reflect areas of topical interest, follow best practice in the presentation of data, and include commentary to reflect developments in the public sector and financial landscapes since the reporting date. There is a balance to be struck between change and continuity, so where presentational changes are made the Treasury will provide clear prior year data to aid comparability. 4.3 The impact of inflation will be reflected in the WGA Statement of Revenue and Expenditure in the following years, insofar as it affects in-year expenditure. Projections for future expenditure are included in the performance report, by drawing upon the forecasts of the Office for Budget Responsibility. In terms of the WGA balance sheet, inflation can affect the amount that will need to be paid regarding certain liabilities, as one of a number of factors. As required by accounting standards, the financial statements disclose the sensitivity to certain risks which can include inflation and rates of salaries, depending on the nature of the specific liability. For example, WGA disclosures show the sensitivity of the clinical negligence provision to inflation, and sensitivity of unfunded pension liabilities to changes in salaries.