Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted in Part
Inconsistencies between MPM and FReM create ambiguity in fee disclosure requirements for departments.
Recommendation
The Treasury requires departments to disclose information on their fees and charges in their annual reports and accounts, as set out in MPM and the Financial Reporting Manual (FreM). However, the Treasury noted there are inconsistencies between these documents. This has created ambiguity about what departments must report and at what level of detail. The NAO found that disclosures vary significantly across charging bodies, for example, with some omitting key details such as cross-subsidies. We asked the Treasury what it is doing to improve oversight and strengthen disclosure requirements. The Treasury told us it plans to align MPM with the FReM and clarify expectations around departmental reporting.36
Government Response Summary
The Treasury will update the Financial Reporting Manual (FReM) to align to 6.11 of Managing Public Money (MPM) by Spring 2026 to include clearer reporting guidance for fee-charging public bodies. They will also keep this under review and consider if this will be sufficient or whether additional reporting requirements are necessary.
Government Response
Accepted in Part
HM Government
Accepted in Part
4.1 The government disagrees with the Committee’s recommendation. 4.2 The government agrees that published information on fees and charges should be improved. This needs to be balanced against the wider aim to reduce the financial reporting burden and efforts to improve timeliness of financial reporting more generally. The Treasury will update the Financial Reporting Manual (FReM) to align to 6.11 of Managing Public Money (MPM) by Spring 2026 to include clearer reporting guidance for fee-charging public bodies to ensure more effective Parliamentary scrutiny. 4.3 The government will continue to keep this under review including considering as part of a wider review of Central Government financial reporting and consider if this will be sufficient or whether additional reporting requirements are necessary to achieve the Committee’s objectives.