Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Accepted
The Treasury expressed its understanding of how the issues that are of greatest interest to...
Recommendation
The Treasury expressed its understanding of how the issues that are of greatest interest to users of the WGA, including the Committee, evolve over time. The Treasury told us that where users of the WGA continue to rely on the document as a key source of information on an issue, then it will continue to highlight that area. However, it contended that committing to a particular timeframe for reporting on a given issue is not in the interest of this ambition to deliver adaptable reporting which focusses on the highest current priorities.60 Whist the 2019–20 WGA included commentary on COVID-19, as the Treasury moves onto preparing the 2020–21 WGA it must build upon this work with a view to greater transparency. As with any major event with far-reaching economic impacts, the WGA is positioned to provide a record of what happened across and beyond the pandemic which could become a blueprint for future government action.61 The Treasury does not yet know how much money in total has been lost to fraud and error across the Government’s response to COVID-19.62 However, the Treasury agreed that reporting on fraud and error as a result of COVID-19 should be a focus for the foreseeable future.63 Estimates 53 Q 42 54 WGA 2019–20 55 WGA 2019–20, para 1.115, p 44 56 Q 68 57 Q 15 58 WGA 2019–20, para 15, p 212 59 Q 77 60 Q 31 61 Q 32 62 Q 48 63 Q 75 16 Whole of Government Accounts 2019–20 of fraud (committed against the government, such as NHS procurement fraud) and error (resulting from internal government mistakes and undetected inaccuracies made by external participants) should be included along with narrative around government counter action.64 65
Government Response Summary
The government agrees to continue improving the content of the WGA, including spending on net zero, government emissions, fraud across government, long term costs of COVID interventions and inclusion of the equivalent of a viability statement, with a target implementation date of July 2023.
Government Response
Accepted
HM Government
Accepted
5. PAC conclusion: The content of the Whole of Government Accounts has improved but does not transparently report against all key areas of government spending. 5. PAC recommendation: The Treasury should continue to improve the content of the WGA, with specific reference to the following: • Spending on net zero • Government emissions • Fraud across government • Long term costs of COVID interventions • Inclusion of the equivalent of a viability statement 5.1 The government agrees with the Committee’s recommendation. Target implementation date: July 2023 5.2 The Whole of Government Accounts (WGA) financial statements are, like any other audited set of accounts, a record of past financial performance, and give an assessment of the balance sheet at a defined point in time in the past. HM Treasury will continue to improve the content of WGA, to ensure it brings together the best available published information on topics of interest. However, consideration will be given to ensuring that WGA provides the most effective commentary on the financial statements presented and associated issues. The Treasury must also be mindful that adding too many disclosures might make reporting complex and unwieldy. The Treasury will bring in relevant published information where appropriate, but WGA is not the most suitable place for detailed discussion of policy. 5.3 In addressing the request for a viability statement the WGA commentary will make clear that, in line with accounting standards, WGA recognises certain liabilities but not a corresponding asset to reflect the government’s ability to fund these liabilities through future taxation. The performance report will continue to draw upon forecasts of the Office for Budget Responsibility to provide insights into the overall fiscal position. 5.4 Central government emissions data is consolidated in the Greening Government Commitments (included in WGA 2019-20). The extent to which future WGA publications may be able to collate emissions data from individual component annual reports and accounts will depend on the development of the reporting frameworks across the jurisdictions of the UK public sector. In the near term, the Treasury will look to enhance reporting in WGA on emissions and spending on net zero using existing data sources. 5.5 The Treasury has committed to conducting a routine review of the costs of COVID-19, where there have been material changes that can reliably be attributed to COVID-19, and to provide public updates. These updates will be incorporated into the WGA performance report, alongside information from departmental annual reports and accounts and other publications. 5.6 The Public Sector Fraud Authority publishes fraud and error losses for departments and their ALBs, and the total estimated fraud cost to government in the Fraud Landscape Report. Following the release of an updated Fraud Landscape report, these figures will be included WGA 2020-21. 5.7 The Climate Change Committee (CCC) has a statutory duty to monitor and report on progress made in reducing emissions and published the first Progress Report in June 2022. The Department for Business, Energy and Industrial Strategy (BEIS) will respond to the CCC’s recommendations and outline progress against a set of key indicators for achieving the UK’s climate goals in Spring 2023. Information from these sources will be brought into WGA 2020-21.