Source · Select Committees · Public Accounts Committee
2nd Report - NAO financial audit insights 2024–25
Public Accounts Committee
HC 94
Published 22 May 2026
Recommendations & Conclusions
2
Recommendation
Accepted
Qualified accounts are a persistent feature of government’s financial reporting and may indicate underlying weaknesses...
Recommendation
Qualified accounts are a persistent feature of government’s financial reporting and may indicate underlying weaknesses in the financial controls of some bodies. There were 14 government bodies with qualified accounts in 2024–25. Moreover, there are bodies such as the Department …
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Government Response Summary
The government agreed to increase support for departments with qualified accounts through updated guidance, training, technical support, and forums. It committed to writing to all qualified bodies regarding their 2025-26 accounts and providing an update to the Committee by November 2027.
HM Treasury
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3
Recommendation
Accepted
We are concerned that the 17 departmental groups had to write off close to £7...
Recommendation
We are concerned that the 17 departmental groups had to write off close to £7 billion in total during 2024–25 for spending that did not achieve intended objectives. In addition to writing off £6.6 billion during 2024–25, the 17 departmental …
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Government Response Summary
The government accepted the recommendation to analyse the root causes of recent large reported losses across government to identify lessons for future investment decisions. The Treasury committed to leading this analysis and reporting back to the Committee by the end of 2026.
HM Treasury
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4
Recommendation
Accepted
Government bodies too often lack the necessary financial management skills to support digital transformation effectively.
Recommendation
Government bodies too often lack the necessary financial management skills to support digital transformation effectively. There are potentially huge gains to be had in government from successfully leveraging new technologies and digital opportunities, in terms of both better services for …
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Government Response Summary
The government agreed to the recommendation, outlining plans to include a dedicated financial management module in the Major Projects Leadership Academy by March/April 2027 and continuing efforts to strengthen finance capability through recruitment and risk management activities.
HM Treasury
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