Select committee: Public Accounts Committee
Recommendation 27
43rd Report - MoD’s oversight of Reserve Forces’ and Cadets’ Associations
Published 5 Sep 2025
Addressed to HM Treasury
Public Accounts Committee MoD’s oversight of Reserve Forces’ and Cadets’ Associations All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Some of the RFCAs’ financial reporting has not complied with HM Treasury guidance and International Financial Reporting Standards. For example, the RFCAs’ accounts have not included a cash flow statement, nor have they correctly disclosed a defined benefit pension scheme for employees. Non-compliance with these rules has created an inconsistency in the financial reporting between the Department and the Council.43 The Council accepted responsibility and acknowledged that initially it did not have a good understanding of the Treasury’s financial reporting manual or guidance on preparing an annual report and accounts. The Council insisted, however, that the accounts have still been audited and that it knew how the money had been received and spent. The Council noted that the Department had also not picked up on the missing cash flow statements but, now that both the Department and the Council were aware of it, a cash flow statement would be included in future accounts.44
From: Public Accounts Committee, 43rd Report - MoD’s oversight of Reserve Forces’ and Cadets’ Associations (HC 893), 5 September 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Forty-third Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 5 November 2025).
Treasury minutes: Government response to the Committee of Public Accounts on the Forty-third report from Session 2024-26
Published 19 January 2026.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with most of the Committee's recommendations on the Reserve Forces' and Cadets' Associations, with target dates mainly of March or June 2026, and disagrees with one on publishing the 2023-24 accounts.
- On the Reserves, it agrees to set out its plan by March 2026 and says it will provide updates on progress as requested; it plans legislative measures in the next Armed Forces Bill to increase Active Reserves towards the 20% target, "when the financial situation allows".
- On Cadets, it agrees to a plan by June 2026 and says development of a programme plan for growth in Cadet numbers is "well underway", including work on adult volunteers and safeguarding capacity.
- On the proposed NDPB, it agrees to update the Committee by March 2026 and says the proposal "remains one of the measures being developed for potential inclusion in the 2026 Armed Forces Bill".
- It disagrees with the recommendation to publish the 2023-24 accounts in a compliant format, saying it is working to lay the 2023-24 and 2024-25 accounts "as planned in 2025-26" and acknowledging that "certain areas are not currently compliant with the FReM".