Whole of Government Accounts - Public Accounts Committee - UK Inquiry Tracker

Whole of Government Accounts

Public Accounts Committee Closed Inquiry

Opened: 26 Apr 2022 Closed: 14 Dec 2022 Parliament page

The Whole of Government Accounts (WGA) is a unique document which provides the most complete and accurate picture available of UK public sector finances. A set of financial statements prepared by HM Treasury in accordance with International Financial Reporting Standards, it consolidates information on the financial performance of over 9,000 … Read more

21 Recommendations

6 Conclusions

1 Report

1 Oral session

4 Letters

1 Event

Activity timeline 7 events

12 Jan
2023

Correspondence

Correspondence from Catherine Little, Second Permanent Secretary Head of Government Finance Function, HM Treasury, re Whole of Government A…

14 Dec
2022

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Twentieth report from Session 2022-23

8 Nov
2022

Correspondence

Correspondence from Dame Meg Hillier, Chair, Committee on Public Accounts to Catherine Little Second Permanent Secretary HM Treasury, re Wh…

17 Oct
2022

Correspondence

Correspondence from Catherine Little, Director General, Public Spending HM Treasury, re Whole of Government Accounts (WGA), dated 4 October…

14 Oct
2022

Report published

Twentieth Report - Whole of Government Accounts 2019–20

8 Jun
2022

Oral evidence

Whole of Government Accounts

9 Mar
2022

Correspondence

Correspondence from Dame Meg Hillier, Chair of the Public Accounts Committee, to Catherine Little, Director General, HM Treasury, re Whole …

Oral evidence sessions 1 session

8 Jun 2022

View on parliament.uk

Whole of Government Accounts

Cat Little · Cabinet Office Sir Tom Scholar · HM Treasury Vicky Rock · HM Treasury

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Twentieth Report - Whole of Government Accounts 2019–20	HC 31	14 Oct 2022	27	Response document linked

Recommendations & Conclusions

27 results

2 Recommendation

Twentieth Report - Whole of Govern…

Poor design and testing of OSCAR II caused significant delays to the Whole of Government...

Poor design and testing of OSCAR II caused significant delays to the Whole of Government Accounts. In July 2020 the Treasury replaced its now obsolete IT system with a new system, OSCAR II, used for collecting and consolidating data from … Read more

HM Treasury

3 Recommendation

Twentieth Report - Whole of Govern…

Failures in the local audit market in England and Wales are resulting in poorer quality...

Failures in the local audit market in England and Wales are resulting in poorer quality data for Central Government to use in oversight, and in preparing the Whole of Government Accounts. Before the pandemic, the Local Government audit sector was … Read more

HM Treasury

4 Recommendation

Twentieth Report - Whole of Govern…

Inconsistent presentation of data between years, and lack of reflection of current Government policies and...

Inconsistent presentation of data between years, and lack of reflection of current Government policies and economic context, reduce the usability of the Whole of Government Accounts. The 2019–20 WGA presented some important trend analysis within the Performance Report; an aspect … Read more

HM Treasury

5 Recommendation

Twentieth Report - Whole of Govern…

The content of the Whole of Government Accounts has improved but does not transparently report...

The content of the Whole of Government Accounts has improved but does not transparently report against all key areas of government spending. The issues that are of greatest interest to users of the WGA, including the Committee, evolve over time. … Read more

HM Treasury

6 Recommendation

Twentieth Report - Whole of Govern…

Government has not yet set out the consequences of announced Civil Service staffing reductions.

Government has not yet set out the consequences of announced Civil Service staffing reductions. In May 2022, the government announced that it intends to cut 91,000 jobs from the civil service over the next three years. The 2021 Spending Review … Read more

HM Treasury

1 Conclusion

Twentieth Report - Whole of Govern…

Based on the Whole of Government Accounts (WGA) for the year ended 31 March 2020,...

Based on the Whole of Government Accounts (WGA) for the year ended 31 March 2020, we took evidence from HM Treasury (the Treasury) on 8 June 2022.1 The WGA is a unique document which provides the most complete and accurate … Read more

HM Treasury

7 Conclusion

Twentieth Report - Whole of Govern…

Timeliness is essential when gathering high-quality data needed to produce useful information; delays reduce the...

Timeliness is essential when gathering high-quality data needed to produce useful information; delays reduce the value and transparency of information in the WGA and diminish its potential to generate valuable insights.17 The published accounts are an important source for key … Read more

HM Treasury

8 Recommendation

Twentieth Report - Whole of Govern…

Throughout the course of the 2019–20 accounts preparation process, the Treasury repeatedly underestimated how long...

Throughout the course of the 2019–20 accounts preparation process, the Treasury repeatedly underestimated how long it would take to produce the WGA; missing both 11 Public Accounts Committee, Report of session: Whole of Government Accounts 2018–19, 22 January 2021 12 … Read more

HM Treasury

9 Recommendation

Twentieth Report - Whole of Govern…

The Treasury has laid out its aims for delivery of the 2020–21 and 2021–22 accounts,...

The Treasury has laid out its aims for delivery of the 2020–21 and 2021–22 accounts, setting target dates for publication of March 2023 and November 2023 respectively. This gives the Treasury less than 10 months from publication of the 2019–20 … Read more

HM Treasury

10 Recommendation

Twentieth Report - Whole of Govern…

In July 2020 the Treasury launched its new financial IT system, OSCAR II, for use...

In July 2020 the Treasury launched its new financial IT system, OSCAR II, for use in preparing the WGA. OSCAR II replaced the previous, obsolete system and was designed to support, amongst other functions: the collection and consolidation of data … Read more

HM Treasury

11 Recommendation

Twentieth Report - Whole of Govern…

However, during the implementation of OSCAR II, a number of significant problems arose.

However, during the implementation of OSCAR II, a number of significant problems arose. The problems, which were not localised but were encountered across the system’s different functionalities, included: issues faced by component bodies when attempting to submit their data to … Read more However, during the implementation of OSCAR II, a number of significant problems arose. The problems, which were not localised but were encountered across the system’s different functionalities, included: issues faced by component bodies when attempting to submit their data to the system, in some cases requiring system changes to be made, and 19 WGA 2019–20, para 14, p 212 20 Public Accounts Committee, Oral evidence: Whole of Government Accounts, HC 655, 19 November 2020, Q 117 21 Public Accounts Committee, Correspondence re Whole of Government Accounts (WGA) 2019–20, 25 January 2021 22 Public Accounts Committee, Correspondence re Whole of Government Accounts (WGA) 2019–20, 15 July 2021 23 Public Accounts Committee, Correspondence re Whole of Government Accounts (WGA) 2019–20, 23 October 2021 24 Public Accounts Committee, Correspondence re Whole of Government Accounts (WGA) 2019–20, 11 January 2022 25 Public Accounts Committee, Oral evidence: Whole of Government Accounts, HC 31, 8 June 2022, Q 83 26 Q 17 27 WGA 2019–20, paras 13–14, pp 211–212 28 WGA 2019–20, para 17b, p 213 29 Public Accounts Committee, Correspondence re Information on the OSCAR II system, 28 October 2020 30 PAC report – WGA 2018–19, para 21, part 2 12 Whole of Government Accounts 2019–20 taking up to a year to resolve; some reports produced by the system were incomplete and inaccurate, including the reports used by component auditors to validate data entry as well as some reports provided to the NAO for audit; and performance issues with the reporting module, which delayed the production of the accounts.31 We questioned the Treasury on why these issues had not been anticipated; although they had carried out preliminary user acceptance testing, they nonetheless failed to identify or resolve these issues before the system went live.32 The Treasury told us that the initial system specification was not sufficient and that not all data collection requirements had been anticipated.33 The Treasury estima Show less

HM Treasury

12 Recommendation

Twentieth Report - Whole of Govern…

The Treasury has told us that that all known issues with OSCAR II have now...

The Treasury has told us that that all known issues with OSCAR II have now been resolved as they move onto the production of the 2020–21 WGA. However, the Treasury informed us that it anticipates that there are likely to … Read more

HM Treasury

13 Recommendation

Twentieth Report - Whole of Govern…

The Local Government audit sector in England and Wales has been under significant strain for...

The Local Government audit sector in England and Wales has been under significant strain for a number of years. There is a shortage of auditors with the knowledge and experience to deliver, within the expected timeframes, the high-quality audits required … Read more

HM Treasury

14 Recommendation

Twentieth Report - Whole of Govern…

The Treasury explained that the decision was made to prepare the WGA using unaudited data...

The Treasury explained that the decision was made to prepare the WGA using unaudited data from these bodies as a trade-off between timeliness and completeness. The Treasury told us that it waited for the audits of all the largest bodies … Read more

HM Treasury

15 Conclusion

Twentieth Report - Whole of Govern…

This problem is expected to escalate further as the Treasury look towards the 2020– 21...

This problem is expected to escalate further as the Treasury look towards the 2020– 21 WGA. The proportion of 2020–21 Local Government audits that had been completed by the target date of 20 September 2021 dropped again from 45% in … Read more

HM Treasury

16 Recommendation

Twentieth Report - Whole of Govern…

There are several factors that contribute to maximising the usability of the WGA for the...

There are several factors that contribute to maximising the usability of the WGA for the public and other stakeholders. We discussed with the Treasury how creating successive sets of accounts which are presented in a consistent and comparable way enables … Read more

HM Treasury

17 Recommendation

Twentieth Report - Whole of Govern…

In the 2019–20 WGA, the Treasury presented some important trend analysis within the Performance Report...

In the 2019–20 WGA, the Treasury presented some important trend analysis within the Performance Report on income and expenditure, as well as assets and liabilities.47 This is an aspect of the WGA reporting that we welcome as an incredibly useful … Read more

HM Treasury

18 Recommendation

Twentieth Report - Whole of Govern…

Another factor to consider in elevating the usability of the WGA is the way in...

Another factor to consider in elevating the usability of the WGA is the way in which current Government policies and economic context are reflected in its reporting; currently such context is lacking. The Treasury has invited our thoughts on how … Read more Another factor to consider in elevating the usability of the WGA is the way in which current Government policies and economic context are reflected in its reporting; currently such context is lacking. The Treasury has invited our thoughts on how value could be added to the WGA and the Performance Report could be greatly improved by developing the commentary to reflect developments in the public sector and financial landscapes since the reporting date.49 50 This is especially relevant given the significant gap between the year-end and the time of publication for the WGA. Even if the Treasury succeed with plans to recover some of the delays experienced in 2019–20, this gap will still be around two years for the 2020–21 WGA.51 For example, we asked the Treasury how it is considering the impacts of inflation, which permeate across all sectors, issues, projects and Departments, and how these inflationary pressures will be managed.52 The Treasury told us it is in constant touch with departmental finance teams to discuss the impact of inflation on their programmes and how they are seeking to manage these whilst continuing to observe departmental budgets. The Treasury explained how non- staff expenditure is often governed through committed contracts and that it works closely with supply chains to mitigate and manage cost pressures. Staff costs are often directed by 46 WGA 2019–20, para 1, p 209 47 WGA 2019–20, pp 40–75 48 Qq 37–39 49 Q 75 50 Q 79 51 Q 17 52 Q 42 Whole of Government Accounts 2019–20 15 recommendations from independent pay review bodies; how inflation will be considered in these recommendations will be seen in the upcoming reviews.53 The impact of inflation on budgets, spending, and pay reviews is not currently reported in the WGA.54 Similarly, the commentary on key targets does not include all current updates and proposals. For example, the 2015–2020 target for capital receipts on property disposals is reported but the Treasury were not clear on current targ Show less

HM Treasury

19 Recommendation

Twentieth Report - Whole of Govern…

The Treasury explained to us how the WGA plays a crucial role in enhancing the...

The Treasury explained to us how the WGA plays a crucial role in enhancing the fiscal transparency of the public sector, giving a more complete and overarching view of government spending and the public financial structure that exists elsewhere. This … Read more

HM Treasury

20 Recommendation

Twentieth Report - Whole of Govern…

The Treasury expressed its understanding of how the issues that are of greatest interest to...

The Treasury expressed its understanding of how the issues that are of greatest interest to users of the WGA, including the Committee, evolve over time. The Treasury told us that where users of the WGA continue to rely on the … Read more

HM Treasury

21 Recommendation

Twentieth Report - Whole of Govern…

The Treasury currently uses the NAO’s COVID-19 Cost Tracker to provide data for its reporting...

The Treasury currently uses the NAO’s COVID-19 Cost Tracker to provide data for its reporting on COVID-19 in the WGA. However, the NAO is set to cease publishing this information in the near future and it is therefore important that … Read more

HM Treasury

22 Recommendation

Twentieth Report - Whole of Govern…

Improvements to the transparency of information in the WGA would also be achieved through more...

Improvements to the transparency of information in the WGA would also be achieved through more detailed narrative in certain areas. The asset and liability split reported in the WGA shows total assets of £2,138.5 billion and total liabilities of £4,972.7 … Read more

HM Treasury

23 Recommendation

Twentieth Report - Whole of Govern…

In May 2022, the government announced its intention to cut 91,000 jobs from the civil...

In May 2022, the government announced its intention to cut 91,000 jobs from the civil service over the next three years, with the aim of returning to 2016 staffing levels.70 The 2021 Spending Review had already confirmed the need for … Read more

HM Treasury

24 Recommendation

Twentieth Report - Whole of Govern…

Staff cuts will inevitably involve a quantity of associated costs, including redundancy costs, that the...

Staff cuts will inevitably involve a quantity of associated costs, including redundancy costs, that the government will have to pay out. We questioned the Treasury as to what the total cost of these payments was likely to be, and although … Read more

HM Treasury

25 Conclusion

Twentieth Report - Whole of Govern…

This scale of these proposed cuts has the potential to bring about significant consequences for...

This scale of these proposed cuts has the potential to bring about significant consequences for service delivery, both in regard to the quality and efficiency of delivery and the range of services it will be possible to provide. At the … Read more

HM Treasury

26 Conclusion

Twentieth Report - Whole of Govern…

The Treasury told us that at this stage the challenge of how best to achieve...

The Treasury told us that at this stage the challenge of how best to achieve these reductions is in the hands of individual departments. It explained that each department is itself best placed to understand the resourcing requirements needed to … Read more

HM Treasury

27 Conclusion

Twentieth Report - Whole of Govern…

We discussed with the Treasury that one way in which headcount reductions might be accomplished...

We discussed with the Treasury that one way in which headcount reductions might be accomplished whilst at the same time maintaining the scope and standard of service delivery, is by way of increased digitisation. By digitalising services, the required level … Read more

HM Treasury

Correspondence 4 letters

12 Jan 2023 Correspondence from Catherine Little, Second Permanent Secretary Head of Government Finance Function, HM Treasury, re Whole of Government Accounts (WGA), dated 20 December 2022

Parliament page

8 Nov 2022 Correspondence from Dame Meg Hillier, Chair, Committee on Public Accounts to Catherine Little Second Permanent Secretary HM Treasury, re Whole of Government Accounts 2020-21, dated 3 November 2022

Parliament page

17 Oct 2022 Correspondence from Catherine Little, Director General, Public Spending HM Treasury, re Whole of Government Accounts (WGA), dated 4 October 2022

Parliament page

9 Mar 2022 Correspondence from Dame Meg Hillier, Chair of the Public Accounts Committee, to Catherine Little, Director General, HM Treasury, re Whole Government Accounts 2019-20 and 2020-21, dated 3 March 2022

Parliament page