Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Accepted
Treasury plans to enhance WGA clarity by consolidating information and linking external data.
Recommendation
We asked the Treasury how it would resolve information on given topics, such as pensions, being dispersed across the accounts. It replied that, whilst the notes and accounts are prepared in line with International Financial Reporting Standards (IFRS) and therefore have a prescribed format, it can bring information together in the performance report in future.48 We also questioned the Treasury on several areas of interest, such as liabilities to the EU, which we found lacked sufficient explanation within the accounts. In response, it noted that full detail could not be given for all topics, as a balance is needed in level of detail given on a topic, against the overall size of the WGA. The Treasury also acknowledged that it could link to other sources of data available online, for more complex topics.49
Government Response Summary
The government accepted the recommendation, agreeing to bring information together in the WGA performance report by July 2025, specifically by publishing undiscounted data and long-term trend analysis in the 2023-24 WGA and reviewing linkages.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: July 2025. One of the important principles of WGA is that it summarises and presents information already in the public domain. It is correct that departmental accounts should be the first place where information relevant to departmental finances are published, with WGA acting as an opportunity to aggregate, summarise and analyse trends. Where undiscounted data is available it will be published in the WGA performance report. The 2023-24 WGA performance report will include long term trend analysis of significant assets and liabilities. Where possible updates on how government seeks to manage liabilities will be provided. Linkages between discount rate information in different parts of the Performance Report and Accounting Notes will be reviewed in the 2023-24 WGA to streamline the content. Accounting standards require disclosure of significant assumptions and sensitivities as part of the notes to the financial statements. These include sensitivity analysis for other key assumptions: rate of increase in pensions, rate of increase in salaries or life expectancy in retirement.