Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Accepted
Government spending control framework relies on departmental estimates and parliamentary authorisation.
Conclusion
This Report is part of the framework of control over government spending. Resource–based Supply requires Departments to estimate and manage the financial resources they need during each financial year on an accruals basis for commitments to provide services, and on a cash basis to meet commitments as they mature. Parliament authorises Departments’ proposed cash spending and use of resources.
Government Response Summary
The government agrees, stating that it has provided comprehensive IFRS 16 Leases guidance to all departments through various resources and has committed to a post-implementation review of IFRS 16 for central government with its Financial Reporting Advisory Board.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. included links to online IFRS 16 Leases guidance available to all departments. This included IFRS 16 Leases application guidance, IFRS 16 budgeting guidance, the IFRS 16 guidance from the Financial Reporting Manual and the guidance available on the Government Finance Function online resource OneFinance. The covering email to the technical paper also drew particular attention to the guidance linked within the paper. HM Treasury has also committed to its Financial Reporting Advisory Board that it will do a post implementation review of IFRS 16 for central government. HM Treasury engages with departments as part of the implementation process, but it is also important departmental Accounting Officers can share their feedback on the success of the implementation of IFRS16, because ultimately, they are responsible for ensuring their finance teams have the right training in place when new accounting standards are implemented.