Recommendation 10

Small central government bodies are largely subject to the same financial reporting and external audit requirements as large bodies. This is unlike small companies and charities in the UK, and small central government bodies in countries such as New Zealand and Portugal, which benefit from exemptions and simplified requirements.15 The Office of the Children’s Commissioner told us that it undergoes more detailed audit testing than an academy trust with an expenditure level 20 times higher.16 11 C&AG’s Report, para 9 12 HM Treasury, Whole of Government Accounts: Year ended 31 March 2024, HC 917, 17 July 2025, p. 155 13 HM Treasury, Task Force on Climate-related Financial Disclosure (TCFD)-aligned disclosure application guidance, updated 17 July 2025 14 Q 58 15 Q 47; C&AG’s Report, paras 19–20 16 Qq 3 and 23–24 8