Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Accepted
Mandate consistent departmental data collection for improved Whole of Government Accounts reporting on key themes.
Conclusion
HM Treasury is not sufficiently proactive in identifying the data it requires for reporting thematic spend in the WGA, or communicating this with Departments. HM Treasury does not actively pursue the data it needs for the WGA beyond providing initial guidance on the format data should be provided in. The performance report in the most recent WGA provides a comprehensive explanation of the contents of the financial statements but does not yet meet best practice in terms of providing a comprehensive strategic, operational and financial review of the financial year. The WGA also includes limited or no commentary on non-financial key performance indicators used by the government to measure its progress on its policy objectives, Whole of Government Accounts 2020–21 7 for example national wellbeing, educational achievement, levelling up, tackling poverty, crime levels, progress on major strategic infrastructure projects, or illegal immigration. Recommendation 5: HM Treasury should, within its Treasury Minute response, explain how it will use guidance to departments or accounts directions to ensure there is more consistent data available from departmental accounts for use in improving reporting within future WGAs on key strategic themes such as climate change and the impact of inflation.
Government Response Summary
The government agrees, stating the 2021-22 WGA already includes updates on climate-related disclosures and inflation impacts, and it signposts to other relevant government publications. HM Treasury will remain mindful of useful disclosures while balancing complexity, noting WGA is part of a broader flexible reporting framework.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. continues to reflect areas of topical interest. The 2021-22 WGA includes an update on climate- related financial disclosures and the impact of inflation on key metrics. In the Performance Report, the WGA signposts to other publications by government that can be used as a complement to the WGA. The Greening Government Commitments (GCCs) sets out the actions UK government departments and their agencies will take to reduce their impacts on the environment in the period 2021 to 2025. This includes commitments for departments to develop and deliver climate change adaption strategies. HM Treasury will remain mindful that the WGA financial statements are a record of past financial performance and are based on the financial data collated from WGA returns. Data is not collated for the WGA performance report, though we include useful information on key strategic themes from published sources where appropriate. HM Treasury carefully consider adding additional disclosures to WGA where useful to the reader, while also being mindful that adding too many disclosures might make reporting complex and unwieldy. The WGA should be seen as a component of a range of government reporting frameworks and is part of a broader framework of financial reporting and management. Each department has its own aims and objectives and so the reporting frameworks are flexible by design to give those preparing reports the autonomy and independence to present their unique objectives.