Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Increased audit threshold for Whole of Government Accounts was temporary and did not impact opinion.
Conclusion
Prior to the 2020–21 WGA, public bodies with a budget in excess of £0.5 billion were required to undergo an NAO audit of the data they submitted for the WGA, in addition to the existing statutory audit of the annual report and accounts. In order to reduce the pressure on finance teams, the Treasury increased the threshold for the 2020–21 WGA from £0.5 billion to £2 billion. This did not lead to the C&AG qualifying his audit opinion in relation to this issue. HM Treasury explained that it viewed the lowering of the audit threshold as a temporary measure rather than an approach they would want to see persistently pursued.35 33 Qq 4–6 34 Qq 7–8 35 Qq 5, 7–8; Public Accounts Committee, Oral evidence: Whole of Government Accounts 2020–21, HC 65, 9 November 2023; and WGA0001 Written evidence from Professor David Heald (Emeritus Professor at Adam Smith Business School, University of Glasgow), 10 November 2023 16 Whole of Government Accounts 2020–21 3 Future of the WGA Long term tracking of COVID spending