Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Accepted
Extensive missing WGA data for 2020-21 impairs reliability, comparability, and expenditure reconciliation
Conclusion
When we examined the 2019–20 WGA, only 23 local bodies had failed to submit data. We found that this nonetheless impaired the reliability and quality of the data underlying the accounts, and consequently the validity of this data as a basis for insights, conclusion, and subsequent decisions.18 We received written evidence from the Association of Chartered Certified Accountants (ACCA), which suggested that the extent of the data that was missing from the 2020–21 WGA meant that not only was comparison between the 2020–21 WGA with figures for the previous year now compromised, but the reader’s ability to reconcile actual and budgeted expenditure was also impaired.19 We were concerned that this problem may be exacerbated further in the 2021–22 WGA, which will cover a period of high inflation.20
Government Response Summary
The government agrees with the committee's concerns regarding missing data impacting the Whole of Government Accounts (WGA) and is taking proactive steps including requiring draft data submissions, engaging with stakeholders, running webinars, and strengthening central government discipline, targeting implementation by Spring 2024.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2024 2.2 HM Treasury is committed to proactively working with all entities to ensure data is collected in a timely manner, and the department is proactively mitigating the risks around missing data. For example, HM Treasury requires bodies to submit draft data even if audited data is not available. HM Treasury is also regularly engaging with stakeholders at a senior level on the matter of unaudited local government statutory accounts, as per recommendation 3 below. 2.3 HM Treasury has run four separate webinars for local and central government preparers, that were attended by over 700 people. The aim of the webinars was to run through the data submission process and provide support for preparers across the different sectors. The department will continue to run webinars in the future. 2.4 HM Treasury is strengthening discipline in central government, including making timely WGA returns an explicit measure in the Accounting Officer end-of-year finance assessments. This has put more rigour and accountability into the system. HM Treasury also contact underlying entities on a regular basis to monitor progress and assist with any issues, escalating to Director level where required, to ensure continuous engagement. 2.5 HMT will continue to try to ensure that we capture as much data as possible across the public sector in WGA, regardless of whether or not it has been audited.