Recommendation 2

It is unacceptable that the increase in missing data is reducing the utility and reliability of the Whole of Government Accounts. A total of 155 public bodies did not submit data this year, including two pension schemes with liabilities of £86.9 billion and £48.2 billion respectively. As we found in our examination of the 2019– 20 WGA, gaps in the data reduces the completeness of the information available in the WGA, and reduces the certainty of any consequent insights, conclusions or decisions. When combined with the delays to the accounts, it makes it a less useful source to base decision making on. Stakeholders have suggested that using unaudited numbers for local authorities would be better than omitting them, as the omission renders the data definitely inaccurate, whereas including unaudited data is only potentially incorrect. Trend analysis will also be negatively impacted by missing data. We are particularly concerned that unless the trend towards incomplete data can be rapidly reversed, it could take several cycles for any trend analysis from the WGA to be of usable quality. As we say throughout this report this delay is highly undesirable and HM Treasury must prioritise ways of improving on this prediction. Recommendation 2a: HM Treasury must be more proactive in collecting the data required to complete the WGA, including: • Engaging with bodies to better understand why they have not submitted data. • Requiring bodies to submit draft data even if audited data is not available. • Identifying appropriate consequences/sanctions for bodies that don’t submit required data. b) HM Treasury should, as part of the 2021–22 WGA, include within the governance statement details of how it is addressing the issue of missing data. 6 Whole of Government Accounts 2020–21