The publication of the financial statements more than two years after the reporting date makes the Whole of Government Accounts (WGA) of limited use.
ACCA expressed its concerns, which align with the recommendations of the Public Accounts Committee (PAC), as part of its response to the call for evidence on WGA 2021/22. ACCA also criticised the quality of information.
As long ago as 2014, ACCA’s report, Whole of Government Accounts: Who Is Using Them?, which scrutinises the consolidated public sector financial reports of several countries including the UK, points out that timeliness and various qualifications hamper the usefulness of the accounts.
It is unclear whether lessons from the past have been effectively implemented
In its 2021 report Rethinking Public Financial Management, ACCA reiterated the call for adopting accrual accounting and urged governments to employ an accrual basis for budgeting. This shift, it argued, would prompt decision-makers to consider the full impact of their choices during the planning phase of the public financial management cycle.
Data quality concern
One of ACCA’s major concerns relating to the WGA 2021/22 report was data quality. Given that significant improvements have been made to the current OSCAR II system, which was due to end in November 2023, data collection should be more efficient and timelier in future years. But the Treasury’s commitment to a 15-month publication cycle for the 2024/25 WGA looks optimistic.
ACCA would like to see scrutiny of the Treasury’s long-term considerations and staffing plan
It is unclear whether lessons from past delays and data-collection issues have been effectively implemented. The comparability of statements between 2019/20 and 2020/21 has been compromised, with a substantial increase in local authorities not submitting data. While there have been improvements in data presentation, there is some way to go to improve WGA content, including year-on-year comparatives.
The government should be commended on its improved staffing plan and the introduction of a project manager; staffing was previously identified as a hindrance to timely publication. But this may continue to be a challenge for the Treasury in light of the commitment to sustainability reporting requirements.
ACCA would like to see ongoing scrutiny of the Treasury’s long-term considerations and staffing plan in conjunction with the revised publication timetable. The Whole of Government Accounts is useful to a wide range of stakeholders, and ACCA will continue to use it as well as watch for the implementation of the PAC’s recommendations and the Treasury’s own commitments.
